East Bay Office Group
FAQ’s
1. How much space do I need?
A good rule of thumb is 250 square feet per person for normal office uses.
2. How long does it take to find new space for my business?
The process of locating, negotiating for, and occupying commercial space can vary greatly depending on the needs of the tenant. It is wise to budget a minimum of 6 months for a basic deal and up to 1 year for more complex requirements.
3. What is the normal term for a commercial lease?
Commercial leases are usually for 3 or 5 years, but it is not uncommon to see longer or shorter terms.
4. What is the difference between NNN, IG, and FS leases?
A triple net or NNN lease is a type of lease where the tenant pays for the operating expenses including utilities, janitorial, water, sewer, garbage, management, and property insurance expenses. A full service or FS lease is one that includes the above expenses for the first year (Base Year) of the lease and then annual increases are passed through to the tenant(s). An industrial gross or IG lease covers property taxes and insurance in the Base Year. Tenants then have increases passed through in subsequent years. IG leases often call for a common area maintenance (CAM) charge.
5. Why should I use a commercial real estate agent?
Sellers and landlords almost always use an agent to represent them in sale and lease negotiations. Buyers and tenants should use an agent for many reasons. A commercial agent will have the market knowledge to negotiate a much better deal for you while you stay focused on running your business. An agent will know what market rates are for similar spaces in the market and will have recent lease and sale comps to back that up. An agent will also be able to negotiate better tenant improvement packages and/or free rent. Lastly, the commissions are almost always paid by the seller or landlord and are set when the listing agreement is signed. The commissions are not reduced if you do not use an agent so you might as well get the knowledge and experience since it doesn’t cost you anything.
6. What other services can an agent provide?
A commercial agent will be able to help buyers/tenants and sellers/landlords in many ways. Agents will have market knowledge and sale/lease comps. They will also be able to put you in touch with all of the services you will need. These include everything from appraisers to architects and contractors to movers.
7. What are rentable and usable square feet?
Usable square footage is the actual size of the space you are renting. Rentable square footage includes a load factor which consists of common areas such as elevator shafts, lobbies, restrooms, and stair wells.
If you have additional questions please do not hesitate to contact us.
