The Essential Office Leasing Stages You Need to Know
When it comes to leasing an office, you could face a lot of bumps whilst embarking on that journey. Being able to weave through these obstacles is not only an important skill, but a necessity if you want good value for your office rental. We’ve laid out the stages of leasing an office space from sending the enquiry to signing the tenancy agreement.
Appoint Tenant Representative
Many of us may jump straight into searching for available office units without appointing tenant representative or real estate advisor. We recognise the transparency and control people like you desire. So, we built spaceSense’s office search engine to provide real time commercial real estate database provided by more than 50 major landlords and REITS.
Upon submitting your interest to view the properties, our real estate advisor will be your single point of support, working with you to get the best possible deal. He/She will represent your interest in identifying, qualifying and negotiating the commercial office lease to suit your needs. Similar to a tenant representative, the real estate advisor will help you in:
- Preparing office move in timeline
- Giving you up-to-date office rental market advice
- Look out for any possible office leasing opportunities, especially those off-market options
- Scheduling and conducting office viewings
- Submitting offer and negotiating office lease terms
- Giving you clarity in cash outlays throughout the process
Best of all, you can use both online and offline professional service at spaceSense.co to secure your ideal office space, for no fee involved.
Conduct Office Viewings
Arrange viewings with your key decision makers. This is the stage where you may discover other office criteria missed out earlier and you should refine your search further with your tenant representative.
Do expect at least 2-3 rounds of viewings, which will take at least 2-3 hour per session.
Issue Letter of Intent (LOI)
If you like the office space you viewed, the next step is to issue Letter of Intent (LOI), a document which is not legally binding describes the main terms and conditions to be agreed upon by both the Tenant and Landlord.
Once the LOI is received by the Landlord, the Landlord will conduct a due diligence check on the prospect and its business activities. Usually, upon reaching a consensus between both the Landlord and the Tenant, a Letter of Offer (LOO) and a specimen copy of the Tenancy Agreement will be furnished to the Tenant to peruse.
Sign off Letter of Offer (LOO)
The Letter of Offer (LOO) is a legally binding document that further spells out more terms that are found in the Tenancy Agreement. Once the details are agreed between both parties, the Tenant will sign the LOO and proceed to make payments for certain items such as the Security Deposit.
After the LOO is signed, the landlord’s legal counsel will present the Tenancy Agreement to the Tenant, outlining the Terms and Conditions applicable to both parties (as stated in the LOO).
As soon as the Letter of Offer and other associated fees are returned to the landlord, the finalized Tenancy Agreement will be issued.
Sign off Office Tenancy Agreement (TA)
A standard office lease in Singapore is approximately 2-3 years. The lease will have additional details that cover your amount of floor-space available, your rights as a tenant, and your maintenance obligations.
You are required to sign and return the duly signed tenancy Agreement to the landlord, alongside the required final payments.
Refer to Basic Leasing Terminology Guide for explanation on key leasing terms.