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There are other types of commercial leases businessman can avail. If you already signed a commercial lease, determine if what type of lease you signed for you to know how to compute the associated costs for each type of lease. Before leasing, determine also if the type of lease is applicable to your business.

Types of Commercial Lease

• Percentage Lease

In computing for the rent basis for the percentage lease, the rent basis was computed using the following formula: monthly rent + percentage of sales monthly. So if your business is into selling or retailing and mall, then this type of lease is the most applicable. The percentage is decided upon the negotiation. If your sales go up, so is your rent basis.

• Net Lease

The computation for the total cost for Net Lease is different from that of Percentage Lease. In Net Lease, aside from the monthly rent, the lessee obligated to pay a little or all taxes, maintenance or insurance.

Net Lease can be applied to any commercial office spaces.

• Double Net Lease

Double Net Lease is similar with net lease. The rent basis for double net lease was computed using the following formula: overall cost = rent + taxes and insurance. So aside from the fix monthly rent, the tenant pays other taxes and insurance.

Double Net Lease also used in any commercial office spaces like net lease.

• Triple Net Lease

Triple Net Lease is also similar to double net lease, except that in triple net lease, the maintenance is now included on the tenant’s cost aside from the fix monthly rent, taxes and insurance. The formula for computing triple net lease is: overall cost = rent + taxes + insurance + maintenance.

Triple Net Lease can also be applied in any commercial office spaces.

• Gross Lease  (fully serviced lease)

Gross lease or fully serviced lease is probably the most hassle free among the type of leasing as you don’t have to have to pay extra costs personally. In Gross lease, the landlord pays most or all the obligations like taxes, maintenance costs and insurance. However, these additional costs are added to your monthly rent called “load factor”. Gross lease is also the most expensive among lease types.

Load factor also includes also a percentage square feet of shared areas like elevators, lobby, stairs etc. aside from the usable square feet of your office space.

As the word implies, subleasing is another type of leasing, but it’s a bit different in terms of the persons or entities involved in the leasing terms. Unlike the traditional commercial leasing where only involves the lessee and the lessor, commercial subleasing a sublessee or a subtenant. Based on that fact, commercial subleasing can be best defined as an agreement in which a property being leased by the original lessee was also rented by a third party or by another lessee known as the sublessee or subtenant. That means that both the original lessee and the sublessee would be leasing the same commercial property at the same time. Each one of them bears different liabilities including the provisions and payment terms.

The primary lessee has the right to lease its leased property to another lessee, normally a portion of the overall commercial space. But the terms of payments for both the original lessee and the sublessee is different. In most cases, the sublessee will only pay only the space they leased to the original lessee, and the original lessee will then pay the remaining balance to the lessor.

Though sublessee is pays a small amount as compared to the original lessee, both of them has the same legal responsibilities to the lessor. Among of the responsibilities original and sublessee must face are damages to the property being leased and the rental fee. It is advisable also that when negotiating on a sublease, know first the terms being offered by the lessee, if they could be trusted or not. If possible, try to check the original leasing terms between the lessor and the original lessee.

For those businessman who needs a small and cheap office space, but on a tight budget when it comes to office space, then subleasing is the best option rather than leasing an entire commercial property which might hurt your budget and paying for those unused areas of your office space.

The success of every business does not rely on trial and error, nor take every risk to achieve success. For your business to grow and become successful, careful business planning and research are needed. Moreover, knowing your business’s capabilities to deliver products and services and how you will bring these services to your customers need to be determined, and you can only know them by conducting a technical feasibility study.

What is a technical feasibility study?

Technical feasibility study is a business study focuses on the evaluation of the ways and means of delivering products and services to your target consumers in terms of different factors (materials, transportation, technology, etc.). The study concentrates on the logistics side your business including the production cost of manufacturing the product.

Technical data must be coincided with the financial data of your business in order for the technical feasibility study to be reasonable. Also it is important to remember that technical feasibility study is not enough to convince or impress customers.

Why conducting technical feasibility study important?

There are a lot of important factors in the success of your business that’s included in technical feasibility study, and most of these factors are on technical side like production expenses, the costs of labor, the materials etc. With technical feasibility study, it’ll be easier for you as businessman to know if your business’s profit is higher than the expenses, if the materials and labor for manufacturing products, the transportation of products to customers are still justifiable or need to be increased.

Another important use of technical feasibility study is that it could be used as a basis in developing a long term business plan for your business specifically on managing the expenses over profit, to show to possible investors that you have already considered the possible scenarios that will happen in the future.

Though conducting technical feasibility study is a bit costly, but the benefits businessman will get in the output of the study are more important than the cost.

After you’ve selected the necessary things to be put into your desired office space, the next task that you need to work on is to how to design these things to produce a very inspiring, lively and stress free working environment. This task is somehow tiring and needs a lot of planning, but in exchange will make your office space simply the best.

Here are some tips in designing your office space using those things you decided to put inside your office like desk, chair, plants etc. It is suggested to ask for help especially in pulling desk and other heavy furniture.

• Your desk must be facing to a wall or to a dead end to avoid any distractions when you are working. Also it is better if your back is towards the wall so place your desk at least 4 feet from the wall for a comfortable feeling when sitting.

• Avoid any noise as much as possible. It is good to have music inside your office, but most of the time, set it to a minimum volume. Curtains with light colors could also be used to your windows to act as a barrier from noises outside.

• Furniture like center table and sofa must be positioned in a comfortable place within your office space. You can also put a television for entertainment for clients while waiting, but this should be placed separate from your office space to increase your work productivity and not easily tempted to watch television during work hours.

• Plants should be place on top of your desk, on your office’s windows, near your door, or any place inside your office space you can easily see them. Plants could relax your mind especially when you’re facing work related problems.

• Lighting must be placed in area that needs it the most, in most cases it should be near your desk. Also select lamps that provide quality lights and are not harmful to the eyes. You can also have a little lamp to be placed on top of your desk for a better source of light especially when working overtime.

• Organize your desk; place your computer monitor to a comfortable place adjacent to your eyes, coffee must also be separate from paper works, pens and markers should be placed in one container, documents should be organized and sorted, and telephones must be placed away from your computer to prevent interference. A large desk that can contain all your needed stuffs when working in ideal.

There are still more office design tips that will help you in designing your office space. It’s all up to you how you design it: just follow these simple tips to increase your work productivity and efficiency.

After you found the ideal office space to put up your business, the next thing you’ll need to is to ensure that you will have that office space. You need to negotiate with the lessor or the landlord. But never go to discussing leasing terms empty handed or you’ll end up signing poor leasing contract. Before you start a negotiation, you must be well prepared and has the knowledge on what to discuss.

Here are some of the important issues to be discussed when negotiating commercial lease.

• Lease Cost

Probably the most important thing you need to know first when leasing. There are 2 types of cost when it comes to leasing.

1.      Monthly Cost

It is the amount that you will be going to pay on a monthly basis. To compute for the monthly cost, multiply first the total area of the space (in square foot) and the cost per square foot to get the yearly cost. Divide the yearly cost by 12 to get the monthly cost.

2.      Maintenance Cost (CAM)

It is the amount that’s added to the overall lease cost as your contribution to the maintenance of the common area where you and your soon to be office space will be using like hallways, restrooms etc.

• Other costs included in the lease

Aside from the monthly cost and the maintenance cost, there are also added costs in which the lessor has included in the leasing terms. Normally, it is the landlord that will pay for these extra costs and then passed them to you later. Examples added costs are:

• Property taxes
• Landscaping and mowing
• Utilities (electricity, water etc.)
• Insurance
• Repairs and other maintenance works

Ask your landlord on what are the other costs included in the lease payment and which among them will you pay.

• Repairs and Upgrades

Most of the time, office spaces especially those that are not newly build are not turn-key. You need some repairs and renovations in wall paintings and lights. Some landlords have their own contractor to do the job, so it’s important to ask who will pay for the services.

• Leasing terms

Discuss also on the duration of leasing. A longer lease term bound to more privilege from the lessor.

• Business restrictions

Last thing you should know are the other aspects that will affect your business operation in the future like the business hours, size of tarpaulin for advertisement, whether you’re allowed to sublease some space etc.

Before you sign the contract after the negotiation, have your lawyer to review the leasing terms carefully to avoid any legal issues and also to know if the leasing terms are fair to both parties.

It is very inspiring to work in an environment that is pleasant to the eye, solemn, natural, and most of all free from stress and interference. If you’re just putting up your new office space in your own house, or you already have your home office space but unsatisfied on the way you designed it, you might be asking questions right now on how do I design my working space to make me inspire in doing my work?, or how do I redesign my office space to increase my productivity while decreasing stress?

First thing you need to do before designing your home office space is of course, choosing the needed equipments and furniture to be installed in your work place. Below are some tips on choosing the things to be installed inside your office space.

• Select office furniture that makes you feel comfortable

Desk, table, chairs and sofa are the most common furniture that is visible in any office space. When selecting these stuffs, choose the ones that you feel comfortable in terms of its color, texture and design.

1.      For your desk, choose the one that is spacious enough to contain all your necessary things; computer, telephone, pens, incoming/outgoing documents, etc.

2.      When selecting chair, select the one that you are comfortable sitting to. A chair where you can lie back a little is much better to reduce backache.

3.      Choose sofa that is very soft so that your clients will be more relaxed while waiting. Also a sofa with a light colored cover is a good choice for your eyes.

• Choose wall designs that are pleasing to the eye

If your desired home office space hasn’t painted yet, paint it with a light colors or your favorite color to have an inspiring atmosphere. If you don’t want to want to repaint your walls, then you can put up colorful wallpapers, or hang paintings or pictures that you like. A colorful and lively workspace could make you more inspired to work.

• Install proper lighting

Choose lights that make your eyes more relax. Place lamps where you need light (on top of desk) to prevent eye damage. Choose lamps that provide high quality lights for much more comfortable workspace especially during nighttime.

• Put some real plants for a more natural environment

Plants will make the atmosphere of your office space more natural. Since you’re spending long hours working inside an isolated and unnatural working area, bringing the nature itself inside your workplace is not a bad idea after all. Plants can reduce your work stress and can give you fresh oxygen to clear your mind while working.

What is Net Lease?

A net lease is a type of commercial lease where the lessee pays for additional costs for operations, maintenance, and property use aside from the fixed monthly payment for the office space. The additional costs are also referred to as “Usual Costs” is the job of the landlord to pay, but in net lease the lessee are oblige to pay a portion for this costs.

What type of businesses Net Lease is applicable?

In general, net lease is applicable in any commercial leases, so whatever type of business you want to put up; law firm, retail store or medical office, net lease can be applied. Also, net lease usually favors the lessor.

What are the costs Net Lease covers?

As mentioned, net lease covers what we called “usual costs”. To be more concise, net lease’s additional costs are categorized into three: maintenance, taxes, and insurance. There are a lot of costs that fall into the three categories like property maintenance fee, insurance, garbage fees etc. so it is important to negotiate very well with the lessor and ask for the amount to be increased to these fees every year.

What are the types of Net Lease?

There are two types of Net lease according to the type of payments imposed. They are as follows:

1. Double Net Lease

It is a type of net lease where the tenant or the lessee requires paying all the taxes and insurance liabilities of the lease aside from the monthly space rental. The formula for computing the overall monthly cost of double net lease is: cost = monthly space rent + taxes and insurance.

2. Triple Net Lease

Unlike the double net least where the lessee is required to pay taxes and insurance only, triple net lease is a type of lease in which the tenant or lessee requires to pay all the three additional costs; maintenance, taxes and insurance. This type of lease is more expensive than double lease. The formula for computing the overall cost is: cost = monthly space rent + taxes, insurance and maintenance.

Same as men, women also have the capability to deal best leasing terms. Before women are being discriminated for they cannot negotiate well than men can. In fact in most cases, if it is a woman who negotiates for the leasing terms, and the lessor sees that the woman don’t know that much about leasing, then the lessor takes advantage of this situation by offering higher prices and poor leasing terms.

Women now a day can negotiate the best leasing deals even better than men can. There are several things women can do in negotiating that men obviously cannot do. Women have the ability to formulate strategies in negotiating and business planning which made them better in negotiating best leasing deals. Women plan better their finances than men.

In reality, women could be successful in negotiating best leasing deals if they are asking the right questions to the lessor. There are certain questions that need to be asked to the property owner before accepting the deal. However, asking many questions without getting to the main point will end up paying more than the leasing price. For women to become successful in their negotiation there are 3 things they need to know for them to hit the nail in the head. They don’t even need to ask nonsense questions, just by knowing the 3 could end up dealing the best leasing terms.

1.      The type of commercial space being leased

If women negotiating know the type of property being leased, then it’ll be easy for her to process with the negotiation given the fact that she knows the price of each type of commercial spaces leased.

2.      The terms of Commercial Lease

She must also determine if the available terms of commercial lease can still be negotiated as there are terms that might not be useful on your part. Omitting such conditions will put you on the advantage. A negotiable leasing terms is better than those non negotiable.

3.      The insurance coverage of the lease

It is also important to know if the commercial space being leased was insured or not. If it is already insured, then elaborate the insurance details further, such as the coverage, the type of the insurance, does it cover only the commercial space? By knowing this, you can then decide to whether the insurance coverage is applicable to your business or not.

Commercial subleasing offers a lot of benefits for businessman seeking for an ideal cheap office space to put up their business. But for the sublessee to acquire such advantages, they must verify first the reliability and validity of the sublease by requesting for the original leasing terms. A dubious sublessor hesitates to show the contract which makes the subleasing unreliable. Also never get blinded for an attractive first offer, remember that sublease must be cheap so try to negotiate for best deals available.

Some of the benefits of Commercial Subleasing are as follows:

• Subleasing is economical

As mentioned, subleasing is inexpensive as the sublessee pays only small amount from the original lease.

• Subleasing is attainable

In most cases, subleasing demands lower requirements as compare to the exclusive leasing, making it easy to get than commercial leasing.

• Perfect for small business owners

Subleasing is perfect for business starters, who need cheap office space and small business owners as subleased property are usually small office spaces.

• Less Complicated than other commercial leases

Subleasing offers simple rules and terms compared to exclusive leasing. However, subleasing is bound to legal issues and must be in accordance with the original lease. Consider having a good lawyer or a trusted real estate agent before signing a sublease contract.

• Subleased spaces are ready to occupy

Subleased properties are ready to occupy so you don’t need to worry about repairs and additional installations.

• Access to shared areas

If the subleased space is inside a building, you have also the access to common areas inside the building like storage room, reception area and other areas at a lower cost or even for free.

• Free use of pre-installed facilities

You don’t have to pay for the pre-installed facilities like fire alarm systems and Internet connections if the entire space (building) already has them prior to subleasing.

• Opportunity to leased the whole space

If time comes that the lessee gives up the leasing contract to decide to look for another space, then you have the opportunity to lease the entire and negotiate to the real lessor on the leasing terms.

• No additional cost for maintenance of shared areas

In most cases, subleasing terms only require you to repair damages within your leased space, but when it comes to common area maintenance (CAM); it is the role of the sublessor and the lessor to repair any damages. In some subleasing terms, a portion for the maintenance is included in the monthly rent.

• Access to Secretarial support

When subleasing an office space, you have the option to borrow employees of your sublessor to do some secretarial jobs like answering the phones, receiving visitors, receiving mails etc. Of course you’ll have to pay them but it is beneficial especially when you’re out for emergencies and personal reasons.

• Access to other office equipments

There are also subleases that include access to other office equipments owned by the sublessor like photocopier and fax machines and printers so that you’ll only need to purchase fewer types of equipment. But this option is a hassle especially for rush works for both the sublessor and the sublessee and can slow down your production.

Office furniture is a must when you put up a new business; either a small home office space or leasing commercial spaces in business parks. Designing your office space is costly, but in reality it does not need to be always that expensive. With proper budget and buying only furniture your office needs, you can have a good-looking, fully-functional and comfortable cheap office space without overspending.

One of the rules in budgeting is “buy only the things that you need” but doing it is not that easy considering there are a lot of luxurious furniture available in the market. That’s why it is very important to stick with your budget, and as much as possible avoiding any unnecessary purchase.

Here are some of the essential office furniture that you will need in starting up your business and additional tips on how and where to get the best quality at a reasonable price.

• Office desk

First thing you consider in choosing the right office table for your office is the table dimensions. Larger table is a bit expensive so choose only the size that fits your office space and your needs. When you decided to purchase your table, don’t just rush into first class furniture shops. Instead, look for the alternatives first; auction, surplus, and factory that offers cheaper but high quality office tables.

If you can’t find the right table at the practical price, you don’t need to jump out your budget, try innovating by using plain table available at any furniture shop. For example, you can purchase a plain table with a large workspace, and then you can add other features like drawers on both sides for extra storage. Just make sure you’ll get the sturdy type of table.

• Office Cabinets

You need to organize important files and documents within your office, so a filing cabinet is needed in your workplace. In choosing the right office cabinet, consider again the area of your office space. You don’t have to buy a single but large filing cabinet. You can have 2 or 3 smaller filing cabinets with 3 drawers each for a better file organization. Try visiting auctions, surplus furniture shop for some used filing cabinets.

You also have the option in choosing the type of filing cabinet; wooden, steel or even plastic for much better durability but with a cheaper price.

• Desk Chair

In choosing your chair, choose the one that is comfortable to sit but with also a comfortable price. Choose the one that allows you to relax while sitting and can support your weight for long hours.

It doesn’t matter if the chair is already used or brand new. Check surplus furniture shops or auctions first if they have used chair for sale, but just make sure if the one’s they sell was damaged or not.

After purchasing the needed furniture for your office space, you should go home right away to prevent yourself from buying unnecessary furniture that will eventually hurt your budget. Using this cheap but high quality office furniture, you can now design the ideal office space you want at a cheaper cost. For sure your customers will be very impressed after knowing that you’ve got an appealing, functional and cheap office space.