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5 Expert Tips To Leasing An Office Space In Malta
LEADING ESTATE AGENTS – PERRY ESTATE AGENTS MALTA – OFFER USEFUL TIPS ON NEGOTIATING THE RIGHT COMMERCIAL OFFICE LEASE IN MALTA
The task of finding office space in Malta may seem daunting at first. With many different people to please and a considerable number of options to consider, you may not know where to begin. By getting in touch with one of our commercial letting experts at Perry, you will no doubt be in a stronger position to find an office space that is inspiring, cost-effective and right for your business. Most important, our leading letting department can assist you to negotiate a fair commercial lease, tailored to suit your specific business needs. This successful negotiation may prove crucial to the success of your business. Here are important factors to consider when negotiating a successful lease:
RENTING AN OFFICE IN MALTA – LENGTH OF LEASE
Once you have located a suitable office space, one of the first points you will most certainly need to establish is the length of the lease. Landlords usually expect at least a two-year term. A shorter term is usually best for small businesses, with an option to renew included. This does not lock you in for too long but gives you the option to stay if the space is suitable. Should your business be location dependent and you feel that you have secured the ideal quality space in a landmark office building, you will want security, so a longer lease makes sense, especially in our current buoyant market.
RENT PER SQUARE METER TO BE PAID
The amount of rent you will pay is an important consideration in a commercial lease agreement. In Malta, office rental rates are usually quoted as a rent per square meter per annum. Our Perry team will be able to give you insight as to the going costs in your area, so you can negotiate a fair price. Part of negotiating renewal options includes specifying rent increase to avoid any surprises in future. Your landlord will likely want to increase the rent periodically. Try to work on a cap on these increases so it remains affordable for you to stay in the commercial real estate location. You can also negotiate the amount of security deposit and the conditions for its reimbursement.
LOOK FOR OTHER COSTS
Many office leases make the tenant responsible for costs such as maintenance or upkeep of common areas. Our team will be able to provide you with the details on these costs up front and negotiate this section to be as favourable as possible. Find out if your business will be responsible for specific maintenance and in the case of a new building establish the exact level of finishing that the office space will be delivered so you can estimate costs. Determine whether there are additional costs due to the fact that you may be expected to install certain costly items such as air-conditioning units or partitions yourself. Try to negotiate such items as part of the lease.
ASK FOR CLAUSES WHICH BEST SUIT YOUR CIRCUMSTANCES
Ask for amendments to the lease that may benefit your business. For example, a clause allowing you to sublease parts of the property can be important should you not require the whole space being rented immediately. You may want to ask for a clause which grants you the right of first refusal over any other space being rented within the same building in case you envisage a quick expansion. It is also possible to negotiate for the landlord to be responsible for making improvements to the property before you move in. Make sure you are permitted to put up signage for your business if this is important for you etc.
CHECK THE TERMINATION CLAUSE
Read the terms of your office lease with regards to default and termination of the lease. You will want a clause that allows you time to regularise your position. You will want to negotiate any penalties for early termination of the lease should you decide you need to leave before the term is up due to circumstances beyond your control, particularly in cases of “force majeure” or rapid expansion.
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