Team Olympian – Formerly Spencer Group Inc., Realty Brokerage.'s blog

Don't expect favours for being a good tenant and getting along with the landlord.

It is a human expectation that being good will bring you appreciation, praise, and a better deal.
Not in commercial real estate.

I’ve seen many tenants make this mistake, thinking that their landlord likes them and will give them a good deal. They think that because they were a great tenant for a long period with no complaints and paid on time, they will get rewarded for that.
Unfortunately, this is not true. None of that means your landlord will give you a good deal or do you any favours.

Evaluate the current productivity of the space for you.

Although you monitor your productivity surroundings daily, once in a while you should conduct more comprehensive research.
It is good to take time with your team to see how your space worked out for the company over the current lease period.
If you ever worked from other locations, you need to compare them.
Not only does this matter for your decision to renew, but it can also help shape anywhere else you work from.
This statement is universal.
You’ll see what floor setup best and what environment is your employees thrived in...

Start early.

It’s not uncommon at all to see landlords raise the rent when it comes time to renew.
That can be okay if the rate is acceptable. Many times, they raise the rent to an unfair level and expect the tenant to be lazy and just accept not having to deal with a new office move.
Such situations take place in GTA almost daily.

How to get around this?
The process is similar to one of how you got the best deal on a new lease in the first place.
Obviously - some details will be different.
Just like every step in this process, to give yourself the most leverage, you need to...

Liability Insurance

This is always mandatory in an office lease and very often underestimated.

If any type of accident happens on company property, the victim will need compensation for their bills and injuries. One lawsuit of this nature could wipe out an entire company, no matter its size.

Probably we all know what the current “workforce” is very sensitive to. This is why liability insurance is always required.

General liability insures your company and the landlord against claims for bodily injury, accidents, even libel, false or misleading advertising, and the costs against...

Commercial Property Insurance.

This type of insurance can be required by banks or the landlord to get financing to lease a commercial property. It also may not always be required. I recommend getting this.

This covers them for damage or loss to the property. A solid policy will cover the property fixtures (lighting, carpet, walls), equipment and machinery, office furniture, inventory or supplies, and any other personal property that belongs to the company and is kept at the office.

There are three basic types of this coverage, basic, broad, and all-risk coverage.
• Basic — The...

Environmental studies.

Depending on where the office is or what industry you are in, you may need to do environmental due diligence as well.

It is not just the latest fad. This has been a traditional approach to new locations both: for lease and sale.

Industrial land can be contaminated by previous tenants. For these types of properties, a light check can be made and if there are signs of the land being contaminated, further investigation will be needed.

You can do some of this with your broker, but a third party is the best option.

It will ensure the results will be taken...

The inspection needs to include any aspect of the space, you will use.

The inspection needs to check on each part of the space you are leasing, including the common areas.
Also the parking lot and landscape. Especially when you are a sole tenant.
If it is needed, this is the time to take care of that type of stuff.
Check the condition of the parking lot for potholes or other hazards. Check the landscaped areas for sprinklers and areas that will prevent flooding.

The structure of the building needs to be inspected thoroughly.
If there are foundational issues, they will come to...

ABCs of commercial real estate: Inspections (1)

It takes time to find the place: size, quality, location.
OK – you are successful, and you signed the conditional lease.

Generally – it is a “due diligence” condition and one of the most important ingredients of it is inspection of the premises.
Usually, after the lease is signed, you have up to 30 days to get inspections done and brush through any concerns you have. If something comes up, the lease can be voided.

A full property inspection is needed to ensure there won’t be any big problems for you and the landlord to deal with....

No branding or culture for clients to see.

You may not even need to consider this option if you bring clients and potential clients into your office.
First off, you’ll have no types of signage or indications you are working from there. Then, you can’t be responsible for the surrounding workers.

In some industries, clients may fully understand meeting in one of these, especially if you are a start-up. Other clients may not be as accommodating to this setup. You know the feel of your client base, so you should know what you fall under here.

Paying for amenities you may not use.

Sure, you run this risk in any type of agreement where you are paying for amenities. It just sticks out here the most if you truly don’t use them at all.
These license agreements aren’t negotiations like normal leases, so you can’t get certain fees waived if you won’t be using the amenity.

The space’s location and flexibility may have come at a cost, and sometimes it can be shared amenities that you wouldn’t pay for in a normal situation.
If you do use these spaces, try and get some use out of everything you pay...