around the office. Sometimes the cheapest place will price itself out this way. Most tenants will consider utility costs, just not the higher price during certain seasons. In a multi-tenant space, the power may be split evenly by all the tenants. These costs include water, cooling, heating, electricity, and waste removal. They may also include an internet connection, depending on how the building is set up. These are all usually factored into the lease in some way. I broke down how different leases are structured with these different costs in Chapter 4. Make sure you include them in your original budgets. Also, get a price comparison for buildings in the area. You don’t want to be overpaying for something simple like your utilities.
PROPERTY TAXES
This is another factor that is based on the layout of your lease. In Chapter 4 I talk about what types of leases include this in base rent and what types require you to pay separately. You could be liable for an increase in property taxes or you could pay a set fee. This portion is overlooked at times, but the escalations are what gets overlooked more often. Request this information from the ownership group or landlord when you first reach out to them about a property.
MARKETING UPDATE EXPENSES
Tenants often forget about these expenses. These costs are what it costs to reprint, recreate, and update any material that has your company’s old address on it. This is business cards, signs, ads, your website, and anything else with that information.
88
Powered by FlippingBook