Office Space Leasing FAQ

Do you have questions about the office leasing process? We are here to help! Here we've collected a list of the most commonly asked questions from tenants beginning the office leasing process:

 

Q: Do you offer short-term leases? What is the minimum lease term that I must commit to?

A: We offer both short-term and long-term leases. Here are some helpful tips for negotiating a flexible office lease.

 

Q: This suite would be perfect if I could move that one wall. Can we move that wall? Can I move a wall? What if I want a glass door? Can you build a conference room in the suite?

A: Yes you can! Boxer has in-house Space Planning and Construction teams that will work with you to configure a space to suit your business needs. These are called Tenant Improvements or TI's. They refer to any modifications that need to be made to a space either prior or during occupancy. Time and cost to complete improvements depends on how extensive they are.

 

Q: What is included in the lease price?  

A: Rent typically includes taxes, maintenance, and janitorial services. The tenant is responsible for telecom, parking charges, or other charges related to the tenant occupying the space. Some buildings are + Electric which means the tenant pays the base rent for the space and their pro-rata share of electricity. Different buildings offer different leases, so make sure you ask this question when touring workspaces. During the leasing process, some provisions are negotiable.

 

Q: What is CPI? Why am I being charged CPI if there is already a rate increase built into the lease structure? Why is there a need for an annual CPI adjustment when my rental rates for my multi-year lease already have increases in it?  In Boxer’s standard lease, when does CPI kick in?

A: Leases have annual fixed rental increases and increases based on inflation to account for rising costs to maintain the building due to inflation. These increases are called escalations. Some Landlords use a base year operating expense escalation and others use a CPI escalation. CPI stands for Consumer Price Index which is an Index published by the government to measure inflation. Boxer uses the CPI method of escalation. This means that rent will be adjusted by the percentage change in the level of the CPI between the base year and the level of the CPI on each annual anniversary for lease terms longer than 1 year. A CPI escalation is advantageous to the tenant because the Landlord has no control over the index as opposed to the operating expense escalation where the Landlord is responsible for controlling their operating expenses. It kicks in after the first year.

 

Q: What are some of the competitive advantages of leasing with Boxer?

A: Boxer has suites in many sizes available immediately across 16 cities. We also offer competitive rental rates with a simple leasing process and flexible terms. You can also expand at any time during your lease term, even if you need to move to another building.

 

Q: Do you offer specials or leasing incentives?

A: Boxer offers some of the most competitive rental rates in the market. We may occasionally offer additional incentives and expansion specials for existing tenants depending on the building. Contact Boxer today to inquire about any current specials.

 

Q; What is the termination fee if I break my lease?

A: You are responsible for the entire contracted lease term and amount as noted on your lease. If you feel have to move out before your lease term has expired, most leases offer the right to sublease.

 

Q: All of your leases start on the 1st of the month, can I move-in mid-month?

A: Yes, you  can move in mid-month, we would pro-rate the rent for that month.

 

Q: Do I need a broker to lease an office?

A: Boxer has leasing agents for all of our buildings so a broker isn't necessary if you don't have one. We also happily work with brokers if you have one.

 

Q: I want to sign a lease, but I don't have a name for my company yet. Is that okay?

A: Yes, that’s okay your company name does not have to match your tenant name.

 

Q: What do I have to pay to get my keys today?

A: First month’s rent and security deposit must be paid to get your keys today.

 

Q: What if I need more space and my current lease isn't up yet?  Can I expand during my current lease term? What if  I want to move to another Boxer building?

A: Absolutely! At any point during your lease, you may expand into a larger office in any Boxer owned building without breaking your lease. Consider renting enough space for any expected growth through your initial lease term and ask your leasing agent about expansion options.

 

Q: What is the acceptance of premises and when does the client sign this document?

A: The acceptance of premises is a document that indicates the tenant accepts the premises as is. The client signs it when they get their keys.

 

Q: What forms of identification do I need to apply for a lease?

A: Prospective tenants need to supply some form of government ID to the leasing representative. This is typically in the form of a drivers license, passport, or state-issued id.

 

Q: What are the nets in NNN?

A: In a triple net lease (Net-Net-Net or NNN), the tenant agrees to pay all real estate taxes, building insurance, & common area maintenance on the property, in addition to any normal fees under the agreement such as rent and utilities.

 

Q: How much free rent is offered in our standard Expansion Special?

A: Boxer’s Expansion Special includes 2 months free on the expansion portions for each year of the lease term extension.

 

Q: What amenities should you ask about when looking at a space?

A: When considering a new space, you should ask about windows, any upgrades such as glass inserts or flooring, on-site delis, ATMs, and garage parking.

 

Q: What is included in a Full Service Lease?

A: A full service lease includes taxes, insurance, common area maintenance, and electricity.

 

Q: What are the 2 monetary requirements for signing a Boxer lease?

A: Our leases request a security deposit & 1st month’s rent, which is standard when leasing any space.

 

Q: What is the difference between useable and rentable square feet?

A: Useable square feet (USF) refers to the actual square footage.

A: Rentable square feet (RSF) is the usable square footage plus the common area factor. The common area factor includes the common areas of the building that all tenants use such as the restrooms, hallways, and elevators. This common area factor is proportionately distributed to the usable square feet (USF) of all spaces within the building.

 

Q: Where can I start my Office Space search?

A: Visit our handy Office Space Search tool to find available suites in your area.

 

Q: Which items cannot be “relocated” during construction?

A: During construction modifications to an office space, walls, glass, outlets, and switches cannot be moved.

 

Q: When is it acceptable to downsize?

A: Tenants are able to downsize at the end of the lease term.

 

Q: What is a contiguous space?

A: Contiguous space is a space that is adjacent, or next door.

 

Q: What does SNDA stand for?

A: SDNA stands for Subordination, Non-Disturbance and Attornment. Every lease is subject to the LL’s loan.

 

Q: What does ROFR stand for? What does it mean?

A: ROFR, or Right of First Refusal, means that the tenant with the ROFR has the first right to lease the space. The tenant with the ROFR is typically the one who most recently leased the space.

 

Q: What is an effective rate?

A: An effective rate is the actual rate you get after you take out all of the expenses of the lease.

 

Q: What is the holdover percentage in the lease?

A: The holdover percentage in the lease is 200%. Holdover refers to the time when tenants remain in the space following the lease expiration date.

 

Q: What is an addendum?

A: An addendum includes additional items to the lease. For example, a signage addendum appends items when the lease is signed.

 

What is the maximum number of days that can be offered using the “Right to Occupy” language?

A: The “Right to Occupy” is a clause in a will that gives the beneficiary the right to occupy a property for a period of time. In our leases, the maximum number of days that can be offered are 30 days.

 

Q: What is the difference between a M.R. and T.I.?

A: A T.I. (Tenant Improvement) is associated with a signed lease. This refers to improvements or upgrades to the premises prior to or during tenant occupancy, and may be paid for by the landlord or tenant. A M.R. (Move-in Ready) is associated with vacant space.

 

Q: Where can I start my Office Space search?

A: Visit our handy Office Space Search tool to find available suites in your area.

Of course, feel free to talk to us directly by clicking the “Chat Live” button at the top of the web page if you have any additional questions. You can also visit our comprehensive leasing guide How to Rent an Office. Or if you need helpful explanations of industry-related terms, see our CRE Glossary.

 

 

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© Boxer Property, All Rights Reserved