When you decide to start looking for a new office lease, or if you’re a first-time commercial lessee, there are a lot of issues to consider prior to signing on the dotted line. One factor you’ll have to think seriously about is whether you’re a better candidate for a short-term or a long-term lease.
If you are not sure what the differences between these are at this point, don’t panic. That’s where this guide comes in. As you read on, you’ll find out about a few key things that set these two types of leases apart from one another.
Short-Term Lease Characteristics
- More flexible – If you’re building a new office or you might ultimately decide to operate out of your home, the flexibility of a short-term lease might be right for you. You aren’t locked into anything for an extended period, so you can decide what route is really best for you.
- Little negotiating power – If you like the office space you’re considering as-is, this won’t be an issue for you, but if there are things you’d like to change (like converting an unused space into a conference room), you’ll have more negotiating power if you are willing to sign a longer lease. Landlords are more likely to make big changes for tenants they can count on long-term.
- Good for short-range ventures – If you’re not sure in what direction the coming year will take you, a short-term lease is a good option. It will give you the workspace you need to make your current venture a success without the headache of knowing you’re stuck paying a long-term lease if it’s not needed.
Long-Term Lease Characteristics
- Good for established businesses – If your company already has a solid client base and there’s no concern regarding your profitability, a long-term lease allows you to have a stable home base for as long as you want. This is great for business owners who don’t want to worry about moving their operations every year or two.
- Often less expensive – As a general rule, business owners who are willing to sign long-term leases pay less rent per month than short-term lessees. This is something to consider if you’re only thinking about going with a short-term space because you like the office better. Ask yourself if you could you use the money you would be saving to make modifications to a less costly space and come out ahead in the long-run.
- Give clients a reference point – Where your workspace is says a lot about the kind of company you run. If your business often has clients into the office, signing a long-term lease allows them to easily associate you with your location. If you’re in a great part of town, for instance, you’ll give them a good first impression.
These are just a few major differences between short-term and long-term office lease agreements. Before you choose a new place to work, it’s important for you to take tours of various buildings and learn what each of them can offer. At TradeCenter 128, we have both long-term and short-term offices available. Get in touch with us at 781.932.7039.