Negotiating Office Lease Packages

There’s more than the monthly rent involved in space selection and outfitting

For growing companies it generally is inevitable – more space is needed to handle the expanding business.

“Finding suitable new quarters can be stressful as companies seek a balance between budgets and a desirable location,” says Mark Bassil, co-founder and vice president of MAiSPACE, a Mt. Olive, NJ, based manufacturer of modular office furniture systems. “While certain types of businesses can do business from anywhere, others seek proximity to customers, suppliers or to locate in districts where related types of businesses are done.”

If the growing company is either unwilling or unable to buy a building, it will find itself in negotiations with landlords. “The state of the commercial real estate market has a major influence on lease costs and terms,” Bassil says. “But regardless of the market, companies can often strike a better deal if they are prepared to negotiate for more attractive lease packages. Open offices and systems furniture help strengthen the future tenant’s bargaining position.”

Cost Factors to Consider Up Front and Down the Road

High-quality stackable panel systems furniture configured as office cubicles, collaboration and reception areas together with modular movable wall systems for conference rooms and private offices are attractive to all parties for many reasons. “Systems furniture can simplify the entire negotiating process,” Bassil says. “Landlords are primarily interested in renting space. Unless they are leasing 50,000 square feet or more, they generally do not want to get involved in finishing out the workspace. Business owners, on the other hand, are generally not prepared to evaluate, hire and manage independent contractors to fit out bare bones floor space.”

That’s the systems furniture solution. “We have helped companies put together stunning offices running from two to several hundred units, and at prices starting from $12 to $15 per square foot installed including voice, data and power cabling,” Bassil says. “Local MAiSPACE dealers and distributors team with specialists at interior design and planning firms to take on turnkey projects that are move-in ready within 6 weeks of receiving the order. This removes a lot of headaches from management, allowing them to concentrate on running the business instead of designing workspaces.”

Systems furniture helps business owners negotiate the lowest cost lease based on landlords providing only a warm shell interior. “This is a basic interior space that includes plumbing, HVAC, ceilings, fire protection and electrical service,” Bassil explains. “It is a simple, straightforward and no hassle process.”

Fitting out costs are also reduced thanks to the MAiSPACE patented plug-and-play voice, data and power cabling system. Cables are laid in behind lift-off panel segments, not fished through structural elements. Strategically placed consolidation points simplify adding or removing cubicles by plugging or unplugging them at the nearest consolidation point. “This feature alone saves substantially on installation costs because cabling can be performed by furniture installers at a lower cost than charged by telecommunications professionals,” Bassil says. “Subsequent moves, adds and changes (MACs) can be performed by office IT professionals after a minimum of training.”

Credit for tenant improvements may also be negotiated based on furnishings and fittings such as carpeting and lighting that will remain at the end of the lease. “While MAISPACE quality construction supports trouble free initial installations, it also remains distortion free during MACs – including relocation to another site,” Bassil says. “Adding to the MAiSPACE value proposition is our lifetime warranty and guarantee against obsolescence. While these features do not directly apply to lease costs, they substantially reduce lifetime costs of the systems furniture installation.”

Systems furniture also qualifies for accelerated depreciation and therefore provides attractive tax benefits. This is because the elements – including cubicles, furnishings and movable walls – are not part of the building’s physical structure.

There’s More to a Lease than Rent

Stackable panel systems and movable full walls can be the solution to lower lease costs and lifetime costs in fitting out workplaces and in meeting the technology and versatility requirements today and in the future. As Bassil points out, “Owners of small to mid-sized businesses should look to fully integrated turnkey solutions offered by systems furniture manufacturers such as MAiSPACE and its lineup of dealers, distributors and interior design firms.” These services help business owners

• Optimize floor plans by a mix of full walls and stackable panels
• Balance quality and price
• Achieve eye appeal through colors, fabrics, glass, woodgrains and textures
• Foster staff satisfaction and performance through ergonomic design
• Accommodate changing workplace technology requirements
• Adapt to relocations, moves, adds and changes
• Assure compatibility with future purchases
• Maximize tax benefits with accelerated depreciation

For growing companies it generally is inevitable – more space is needed to handle the expanding business. “Finding suitable new quarters can be stressful as companies seek a balance between budgets and a desirable location,” says Mark Bassil, co-founder and vice president of MAiSPACE, a Mt. Olive, NJ, based manufacturer of modular office furniture systems.

MAiSPACE.com will help business owners and operators make smart choices in Office Cubicles Systems and Office Furniture for their offices and selecting the right Office Setup.

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