How Today’s Technology Gives Commercial Tenants the Upper Hand

Posted on March 28, 2022 by bafcorp20

Although landlords and real estate developers also benefit from today’s technology, the current and evolving advancements available to commercial tenants really provides them with the upper hand in leasing commercial space. Continue below to learn the top 3 ways the technological advancements of today can help commercial tenants get the best deal in the best location possible, plus who to call for professional tenant improvement remodeling and construction in Central Indiana.

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Corporate Tenants Benefit From Commercial Real Estate Technology

The evolving technology of today has really affected corporate tenants in a positive way by enhancing their experience in the commercial leasing industry. Depending on which resources and technologies chosen, corporate tenants can benefit from easier lease management solutions, expanded property touring, and successful negotiations.

Lease Management Solutions

Landlords and property management companies have long had access to programs and software systems that help them organize, track, monitor, and management their leases. But today, corporate tenants also have access to such technologies. As a corporate tenant, you can procure your own commercial lease office management software to help you keep track of important dates within your lease agreement, terms and conditions, lease amendments, claims, and more.

Even better, there are brand new software programs of this sort that will keep track of occupancy expenses and compare such expenses to your lease terms. This software can help lower business costs, especially for companies with a portfolio of multiple office leases.

Expanded Property Viewing

Not only do tenants have the upper hand when it comes to staying on top of their corporate lease agreement, but they can now benefit from advanced property viewing and touring. With innovative technologies like exterior drones, interior infrared drone cameras, and 3D modeling programs, which work similar to virtual reality, allowing 360 degree views and a real-life perspective of a property. In fact, there is even talk right now about smartphone-compatible immersive virtual reality technology applications that can place potential tenants inside the property for an up-close look. Only the future will tell!

Effectual Lease Negotiations

Technology has by far given corporate tenants an advantage in terms of lease negotiations. With just a click of a button, potential leasers can view and adjudicate virtually all market data for a property before even making a call to schedule an on-site tour. This gain can trigger tenants to make more impulsive selections and de-selections during the initial phase of the commercial office search. Additionally, this access to market data tells corporate tenants what the current market conditions are for such real estate, which in turn allow them to better evaluate leasing deals.

But this is not the only market research tech that gives commercial tenants the upper hand; there is also commercial real estate data exchange platforms available, which combines market research and social media data. This program lets tenants get additional information on rent and lease deals, free rent credits, and even tenant improvement allowances.

Are you looking for a qualified tenant improvement contractor to help remodel your office space into a place that best meets the overall objectives of your business? Contact BAF Corporation at 317-253-0531 for commercial tenant improvement remodeling and construction in Indianapolis, Indiana. We serve commercial and industrial clients all throughout the state.

What You Should Know About Signage Rights as a Commercial Tenant

Posted on November 8, 2021 by bafcorp20

Many in the industry would agree that branding is an essential, if not central, element to growing a successful business. One of the most effective and traditional methods of business branding is signage. Having the name and logo outside of your business is a valuable branding approach that influences potential consumers, plus retains the loyalty of your current clients.

But if you do not own your own building, your rights to signage may not be as clear cut as you would expect. As a commercial tenant interested in adding signage for your business, there are some important considerations you must keep in mind before signing a commercial lease or moving forward with signage procurement and installation.

Continue below to learn what you need to know about signage rights for commercial tenants.

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Commercial Tenant Signage Rights

If you are a new or potential commercial tenant, it is important to understand that signage rights are not guaranteed. There are some commercial landlords that do not permit signage on the outside of their building or marque, and others that only allow signage within strict design and color restrictions for the purpose of uniformity.

It is also common for commercial landlords to have preexisting agreements with other tenants that impose a restriction of some kind on new tenants’ rights to business signage. In some cases, it is not up to the commercial landlord at all, as local zoning laws can also prohibit signage, or the amount of signage on or around buildings.

Negotiating Business Signage With a Commercial Landlord

Because the rights and perimeters of business signage are more complex for commercial tenants, it is wise to always inquire about business signage before signing a commercial lease. As a commercial tenant, you may be able to negotiate your signage rights if the current lease does not offer what you are looking for.

If you are already in a commercial lease, you can wait until your lease is up for renewal, and then have signage rights added to the lease. It is vital to have your negotiated or amended signage rights spelled out in writing in your lease agreement.

Common Types of Business Signage Arrangements:

► Shared Building Signage

If a commercial building is shared by two tenants in equal ways, a landlord may agree to or permit a shared building signage system. With shared building signage, both commercial tenants can display their business signage on the building’s facade. This is a common signage arrangement in the commercial real estate industry.

► Exclusive Building Signage

In some cases, a commercial landlord will agree to give a tenant exclusive building signage rights. This means that commercial tenant is the only business displayed on the outside of the building. This signage arrangement is most common in commercial buildings that only have one tenant or space for one tenant.

► Exclusive Monument Signage

Many commercial buildings have monument signs on the outside of the parking lot or street. In such leases, it is common for landlords and tenants to adopt an exclusive monument signage arrangement. This would permit the tenant to display their business signage as a stand-alone sign or within the monument signage out front. This is most commonly reserved for key commercial tenants.

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Commercial Lease Terminology You Need to Know Before Signing

Posted on October 22, 2021 by bafcorp20

Before signing on that dotted line, be sure you are clearly interpreting the commercial real estate leasing jargon on your contract. Continue below to review some of the most common commercial lease terms and definitions you need to know if you want to make an informed and intelligent decision on your new office or business space.

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Vocabulary Terms on a Commercial Office Lease

Understanding the terms and conditions of your commercial lease is quite difficult if you are not familiar with the standard terminology used within such contracts. It can be especially troublesome if you wish to amend or get out of your commercial lease at some point.

Some of the most common terms you will come across, on your standard commercial office lease that is, include common area maintenance, load factor, option to purchase, parking ratio, right of first refusal, rentable square footage, usable square footage, and request for proposal. Let’s start with these:

Common Area Maintenance

Common area maintenance (CAM) is a general term used to describe the stipulations surrounding shared maintenance expenses for the building you are leasing within. In a multi-unit building, each tenant may be required to contribute to such costs, which are typically decreed within the lease.

Load Factor

Load factor, or core factor, is a calculated number generated by the property management company or landlord of the building. This number represents the division of common area square footage among each tenant. This number allows you to interpret the value or fairness of your rentable square footage.

Option to Purchase

Option to purchase is a term typically reserved for leasing a whole building, not just a unit within a multi-tenant office building. Option to purchase is a section that will describe clauses for a tenant who wishes to buy the building outright one day. An Option to purchase agreement should take into account the amount of rent paid to date.

Parking Ratio

Parking ratio simple refers to the number of parking spaces allotted to the tenant’s rented space. For a multi-tenant office building, there could be a certain number of spaces assessed for employees and visitors.

Right of First Refusal

Commercial leases that have a Right of First Refusal clause gives tenants an upper hand when new space becomes available in the building. A landlord must notify you and offer you any newly available space before advertising it to the general public. Basically, you have first dibs, plus to right to refuse it.

Rentable Square Footage

Rentable square footage is the total square footage of the space you are leasing, plus any shared or communal spaces that other tenants use as well, such as outdoor break areas, hallways, break rooms, cafeterias, bathrooms, and elevators.

Usable Square Footage

Usable square footage is generally less than the rentable square footage. It represents the total square footage of the space that can actually be occupied and used. For instance, if an office space has a basement level that is unfinished, it is not usable, and therefore, would not be included in the usable square footage value.

Request for Proposal

A Request for proposal is also called an RFP document. This document is constructed by you and your broker, then submitted to the commercial landlord to notify them of what you expect and want with your leased space. The landlord can respond by informing you if their facility meets your needs or not. This document tends to commence the lease negotiating process.

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What is a Commercial Lease Abstract?

Posted on June 29, 2021 by bafcorp20

If you have ever signed a contract before, you know that they are incredibly long and complicated pieces of literature that are virtually impossible to understand without a thorough comprehension of real estate law and liability. For this reason, when signing a commercial lease agreement, it is common to request a lease abstract.

Continue reading to learn what a commercial lease abstract is, and what should be included in one before making a commitment.

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Commercial Lease Agreements and Abstracts

It is unrealistic to fully read through and understand every element of a commercial lease agreement. Commercial lease abstracts play an important role in a tenant’s ability to understand what contractual agreement they are signing into, and what is expected of them during their occupation. Basically, a lease abstract is a summary of all the primary and important aspects of the lease agreement.

Sort of like CliffsNotes for a book you forgot to read in college, a lease abstract covers the basics of the contract and informs you of all the vital facts you need to know, and in a language you can understand. Lease abstracts are constructed to be free of confusing industry jargon, and allow a potential corporate or commercial tenant to fully understand the liability and responsibilities they are taking on if they choose to enter into the lease.

What Should Be Included in a Lease Abstract?

Although a summary of the full contract, a lease abstract will (and should) contain a lot of information. The basic information it should have includes:

☑ Tenant’s Full Name
☑ Total Cost of Rent
☑ Square Footage of the Rental Space
☑ Lease Start/End Date
☑ First Rent Payment Due Date
☑ Premises Specifications
☑ Authorized Use of the Premises
☑ Parking Space/Requirements
☑ Accountable Party for Repairs and Maintenance
☑ Co-Tenancy/Sub-Leasing Terms
☑ Expansion/Build-Out Rights
☑ Tenant Improvement Allowances
☑ Assignability and Exclusivity (if the lease can be transferred)
☑ Estoppel

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Options for Getting Out of a Commercial Lease

Posted on April 29, 2021 by bafcorp20

One might think that breaking a commercial lease is a major error, but there are some cases in which it’s the best decision for a business. If you find yourself in a commercial lease that is no longer viable for your business objectives, you might want to consider your options. Continue below to learn some tips on how to get out of your commercial office lease, and where you can get professional assistance if things get too complicated.

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How to Get Out of Your Commercial Office Lease

Exit Clause

Also known as break clauses or early termination clauses, exit clauses can help you responsibly and safely get out of your commercial lease. These clauses are found in the fine print of the lease agreement, and allow commercial tenants to break their contract before the original completion date. Check your leasing contract terms and conditions to see if it provides such a clause. When negotiating a commercial lease prior to signing it, it is important to discuss if such clauses should be incorporated into the agreement.

Subleasing

Another option that poses less of a challenge, and perhaps even abates penalty, is to sublease your office space. Commercial subleasing is a common business practice for proprietors who are still obligated under contract, but need to move office locations or planning to close. A sublease is a formal arrangement in which another tenant takes over your lease payment and inhabits your commercial space, but you are still the leaseholder, and still liable for the overall lease. Be sure to check with your landlord to ensure that subleasing is a viable option. Most allow it, but others strictly prohibit it under any circumstances.

Licensing Your Space

If a sublease is not an option because your landlord will not allow it, you may be able to license your premises instead. This means would involve renting out certain areas of your commercial space, such as meeting rooms, conference areas, loading docks, storage units, and so forth, to other businesses. Again, you would need to check if your lease agreement allows this practice.

Lease Buy-Outs

In the case that you cannot break your lease under any other options, your best case scenario would be to find another proprietor to buy out your lease entirely. This means that you would be 100% relinquished of all liability from your lease, and the new tenant would take over and finish it out under their own liability. Often times, landlords allow this option.

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Vital Corporate Real Estate Leasing Tips for 2020

Posted on August 24, 2020 by bafcorp20

As a corporate company, whether just starting out or long-time established, one of the most critical decisions you will make will be renting office space. Not only are there several corporate real estate renting mistakes that can drastically impede the success of your company, office leasing is usually one of the highest expenses as well. For these reasons and more, it is important to do your research before finalizing any office space leases as a corporate tenant.

Continue reading to learn some of the top corporate real estate leasing tips you should consider and discuss with your commercial space planning and permitting consultants.

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When it is your duty to find a new location for your corporate office, be sure to keep these cost-saving tips in mind:

✅ See the Unit in Person

Especially with the current epidemic underway, many commercial brokers are doing business online. As a result, it is becoming more common for commercial proprietors to sign a lease for office space they have never actually seen in person. Although this is deemed acceptable by a large market of tenants, it can be a devastating mistake. Always view and tour a potential office space on-site, not just over the phone or via online listing.

✅ Rent the Right Amount of Space

When it comes to finding an office space, consider the Goldilocks rule. You want the right amount of space that is neither too small and nor too big. Not only can the wrong amount of office space hurt you financially, both short and long-term, it can also cause additionally risk to various aspects of running a business, such as accident liability, building codes, and more.

✅ Do Not Focus Solely on Cost

There is a lot more to renting office space responsibly than just your budget. By leading your search on a budget-focused agenda, you could be putting yourself at a disadvantage. Although budget is an important standard, there are other factors can determine the value of an office space, such as amenities, price per square foot, surrounding community traffic, and more.

✅ Probe the Surrounding Community

On the topic of the surrounding community, be sure to set your sights on other factors that influence an office space other than the actual location. Not only should you be looking at the office space in person, you should also be looking at the surrounding area. You will want to consider the average commercial rental rates, average annual income among residents, crime statistics, nearby businesses, neighboring competitors, and more.

✅ Read the Fine Print in Full

When it comes to leasing a new corporate office space, one of the most vital tasks is to read the contract in full. Commercial leases are much more complex, and require acute attention to detail and fine print. You will want to understand lease clauses, key dates and deadlines, tenant improvement allowances, and more. You should also hire a commercial real estate lawyer to translate any confusing parts of the lease to you.

Commercial Real Estate Space Planning and Permitting in Indianapolis, Indiana

Contact BAF Corporation at 317-253-0531 for trusted commercial space planning and permitting services in Indianapolis, Indiana and its surrounding locations. Our expert space planning and design teams ensure all aspects of your commercial construction and post-occupancy business objectives are met in an ordered fashion, on time, and within budget. We serve all corporate, commercial, and industrial industries in Indianapolis, Indiana and its surrounding districts. Call today to request free information or to schedule a consultation.