After a while, a business needs a physical presence to take the next step. Having a physical location to meet with potential customers, vendors and buyers necessarily requires the use of office leasing. Each party to this lease is required to meet specific criteria and stipulations in exchange for the use of the office space. What does office leasing really entail?
Office rental rates
Estimating the value of an office space is essential before signing a lease. This depends on certain criteria being met. The vacancy rate, statistical and economic data, as well as the local office rental market are the main factors used to establish this estimate for an office for rent in Luxembourg or in any other city. The latter varies greatly from one sector of activity to another.
The second consideration in determining rental costs is the availability of legal protections. This helps to assess legal compliance and determine the target audience. City Hall, public authorities and condominium restrictions all have a say in the type of office space that can be leased in a certain building.
The different types of office rental
There are three distinct office leases in Luxembourg. There are three types of leases: the commercial lease, the temporary lease and the expert lease.
The commercial lease
Traders and artisans are the main tenants of commercial buildings. Those who practice the liberal arts may share this belief. However, the lease cannot come into effect without the agreement of the lessor.
The Limited Term Lease
In most cases, commercial properties found in business parks and incubators will have a lease structure similar to this. This lease can only be for a maximum of two years and is not renewed. During the entire term of the lease, the rent will not vary at all.
The professional lease
The professional lease, which generally lasts at least six years, is best suited to activities that are not intended to generate profits, such as art that is not sold to the public. The tenant has the option of renewing the lease, and with six months’ notice, either party may terminate the agreement.
Any business looking to expand must at some point resort to leasing office space. This can take many different forms, and each has its own advantages. Adhering to these standards can avoid unnecessary hassles and lengthy legal battles. That’s why it is essential to respect them.