Renting office & warehouse space - pointers, please?

There are a lot of things to consider once you find the space and begin negotiations. The one thing two of my clients learned the hard way: Negotiate a termination clause.

When you're signing the lease, you're excited about the space and you want to get a good deal on the front end. It's easy to forget about the "what if's".

What if you outgrow the space before the end of the term? (hint: look for space that would be easy to expand into a neighboring spot or stay within the complex) What if you need to get out of the lease for other reasons, what are the requirements?

Often, you'll have to give up some of the free rent or other perks to get the termination clause. I have successfully negotiated termination clauses that were equal to 2 months of rent after the first year. The other option is to sign a shorter term lease.

~Kelly

Sounds like the voice of experience, Kelly! Good thoughts...

As far as location goes, I would suggest looking on 15th Ave West, just south of the Ballard bridge. There is a new office park there that seems to be slow getting up to full occupancy. They might be looking to make some deals...

And, once the Whole Foods goes in there, this could be a high-value location that you have grandfathered into with cheap rent...

Just a thought!

Hi Annie!

Depending on what you're looking for, you could also check out one of the local coworking spaces throughout Seattle to give you a stepping-stone between working from home and renting your own office. Sometimes these arrangements can work out really well for folks who are not quite yet ready to be locked into a lease but really need to be in a more professional environment. You can check out what is available at http://wiki.coworking.com/CoworkingSeattle.

Best of luck!!

Susan

Another clause, I neglected to mention... If you do end up leasing in a complex where you could expand into the neighboring space, you'll want to ask for "right of first refusal on contiguous space."

That means, if the neighboring space(s) ever become available, you have the right to lease the space before anyone else. Other tenants already in the complex may also have this clause, so you would be in line behind them.

~Kelly

Hey Annie and Christian, I had to chuckle when I saw you two in this thread. Gives a whole new meaning to the "Biznik family".

Wow - thanks to this thread, I learned about coworking, which is EXACTLY what I need. Never heard of it before now. Thanks!

Melissa,
Another good option for solo businesspeople are a new thing called a "Jelly". These are just a group of solopreneurs getting together in one place and working together at the same time. Not on the same project, or in the same place every time... just a way to avoid loneliness!

Matthew Rundle is hosting the first Jelly in this area. Check it out!

Here's the website of a guy who might be able to help you out with this:

www.stevehynds.com

He sells business spaces, I believe, but may know something about leasing/renting as well.

...and on the off-chance that you'll need insurance, feel free to let me know or check out my website at http://www.balcosinsurance.com

Best of luck to you, Annie! If you need anything at all, just let me know. Take care!