Searching for a new office space in Sydney is an involved process. There is plenty to consider, and a number of steps to take before you can finally settle into your new workplace. Because of this process, there are a number of mistakes that businesses may make… and we’ve seen them all.
These mistakes can have a range of consequences… from small inconveniences to major, costly problems which could seriously impact your business and your new office space. That’s why we’ve put together a list of the most common mistakes businesses make with a new commercial lease in Sydney.
No condition report
Buyer must always beware, when it comes to moving into a new office. How are you supposed to know what you’re getting yourself into if you don’t perform a thorough inspection and obtain a professional condition report? There could be myriad issues with your new space… but if you don’t engage a professional assessment, you won’t realise until it’s too late.
A comprehensive condition report will involve an inspection by qualified licensed builders and building consultants. It will include inspection of every aspect of your (potentially) new space, including:
- Wall and floor finishes
- Wet areas
- Windows and doors
- Structural
- Wiring and plumbing
- Exterior and roof
- Carpark and storage areas.
Failing to have a condition report done before signing a lease can result in enormous problems down the track. There may be health and safety hazards in your new workplace and failing to identify these beforehand could result in injury to your staff. What’s more, costly repairs may fall on your shoulders as the new tenant, when in reality, damage was already present.
Ensure you reduce the chances of additional financial costs and harm to your people, with a professional Sydney office condition report.
Ignoring the makegood clause
The makegood clause is one aspect of a commercial lease that is often overlooked… to the detriment of tenants all over Sydney. This part of the lease determines the condition that the tenant must return the office to when vacating at the end of their period. It can vary in detail and in fact, is often quite vague. Beware: a vague makegood clause can cause big problems at the end of your commercial lease.
The makegood clause can vary in terms of works required once you vacate the property. It may simply be removal of unfixed items such as desks, workstations and partitions. On the other hand, some clauses stipulate stripping the office space right back to its base build. However, if your makegood clause is vague, your landlord could demand a large lump sum payment in place of a full Sydney office strip-out.
It all begins with reading your commercial lease in its entirety, and engaging a professional advisory to help break it down for you. A makegoods expert can help nail down your clause, ensuring that your clause is clear before you sign any documents. That will ensure you save plenty of stress, time and money down the track.
Underestimating time costs
The process of searching for commercial property, inspecting the office, negotiating the lease and moving in will take time, and plenty of it. Unfortunately, many businesses underestimate the time that this process may take and therefore, rush various stages that simply should not be rushed.
For example, some organisations have been known to rush through condition reports, negotiation periods and more. This can then result in higher costs than anticipated and problems with their new premises. What’s more, underestimating the time necessary to negotiae and pin down certain parts of your new lease can impact your Sydney office relocation.
Working with a professional Sydney tenant advisory will help ensure you’re adequately prepared for the process that lies ahead.
Failing to seek professional advice
Professional advice is simply a must. Every single Sydney office lease negotiation is slightly different, so even if you have been through the process before, you may come across a variety of hurdles. This is where working with a Sydney commercial tenant advisor is so important. Niche Tenant Advisory will guide you through the process, from start to finish, and help you deal with any issues that may crop up along the way.
A tenant advisor can help with:
- Negotiating a new lease
- Locating an appropriate space
- Lease surrender
- Re-negotiating a lease
- Makegood clause.
With the professionals in your corner, you can rest easy knowing that you’ll be prepared for anything.
Lack of research on your new location
Location is a big part of choosing the right office space in Sydney. Where your office is situated will impact your people, your clients and even your business relationships. Therefore, carefully consider your needs and the market before picking out a location.
A tenant advisor can work with you to make sure your new location will be ideal for your organisation. We can help you take into account the proximity of your people, your clients and any other businesses that you have working relationships with. In the end, this will set you up for success.
Not negotiating
Negotiating is a key part of getting the very best new Sydney commercial lease for your business. If you fail to negotiate, you’ll be taking the lease on your landlords or their agents terms… and they probably won’t be favourable to you and your business. However, by negotiating, you can find a fair middle-ground and save plenty of the life of your lease.
It’s essential that you hire a tenant advisor to handle the negotiation process for you. An experienced negotiator can ensure you’re in a strong position at all times, and get the best outcomes for you. Without the professionals, you may well end up paying through the roof, and getting caught out on the makegood clause.
Get in touch with Makegoods today
To discuss your makegood clause, either before signing your lease or at the end of your tenancy, get in touch with Makegoods today.
