When it comes time to lease an office, take it slowly, because it might not be quite what you're expecting.
"There are a lot of things that are standard in the leases of commercial property that Everthere wasn't familiar with, and a lot of people wouldn't be," said Emory Williamson, the vice president of operations for Sherman and Hemstreet, which manages Everthere Carriers LLC's new office.
Some similarities to renting an apartment exist, such as looking for security and a good location, but there is a host of unique factors involved with leasing a commercial property.
A lease for an office usually isn't as simple as an agreement to pay a monthly rate in exchange for the use of a building, Mr. Williamson said.
"There are a number of charges that could occur," he said.
Several different types of leases exist. In a gross lease, the landlord typically pays for everything relating to the property. Single net, double net and triple net leases become progressively more expensive for the tenant.
In a triple net lease, for example, the tenant could be expected to pay all maintenance costs on the building, insurance, taxes, groundkeeping fees and rent, Mr. Williamson said.
Therefore, if a roof needs replacement and the tenant has a triple net lease, the tenant might have to be responsible for replacing it.
It's important to understand these terms before signing the lease to ensure that the company can afford any unforeseen expenses relating to a property, said Mr. Williamson, who is the chairman of the Greater Augusta Association of Realtors' Commercial Council.
Other charges could include keeping up the heating and air conditioning system, and making repairs of up to $500 if the unit breaks down.
Everthere President Steve Threet, whose rental experience was limited to apartments, wasn't expecting some of the terms found in his commercial lease, such as the heating and air conditioning responsibility.
"One thing I learned was that you have to read the details," he said.
For burgeoning companies moving into their first office, landlords will often require a company principal to sign a personal guarantee of the lease.
"New companies fold so quickly, but if you tie the lease to an individual, then generally you can expect to get paid," Mr. Williamson said.
In addition to understanding the innuendoes of commercial leases, there are other important points to consider when searching for an office, Mr Williamson said.
For Everthere, a major consideration was to get a space big enough to accommodate the company's growth, said Travis Mason, a marketing officer for the company.
"If you sign a three-year lease, don't get something that's only going to suit your fancy for one year," he said.
Because Everthere might grow rapidly in the near future, its owners signed only a one-year lease.
Although Everthere officials called phone numbers on a "for lease" sign, Mr. Williamson said he suggests using a broker to find an office.
"A broker can advise them on what to expect, the type of space they're looking for, the terms of the lease, what they can expect to pay - and the broker is knowledgeable of the local market," he said.
Reach Adrian Burns at (706) 823-3352 or adrian.burns@augustachronicle.com
Finding an office
Tips for finding an office and navigating a commercial lease:
- Before deciding on an office, think ahead to get an idea of how much your company could grow before the lease is up.
- Thoroughly read your lease and expect clauses that might cost you extra money above and beyond the cost of rent.
- Consider using a broker, who can help you find an office and also help with paperwork.
- Everything is negotiable.
Source: Travis Mason of Everthere Carriers LLC; Sherman and HemstreetBuilding a Business
Building a Business is a new, yearlong series in which The Augusta Chronicle follows the progress of a local start-up company, Everthere Carriers LLC, as it attempts to take its fledgling product to a national market. The following is the first story. Updates will be made monthly.
• Series will follow company's journey
• Area men get education in business as they mass-produce novel carrier
• Go to manufacturers, designers with ideas
• Trade show marketing is success for local business
• Patent process is easier with help
• As sales grow, Everthere is turning into full-time job
• Product's success is dependent on testing
• Local business picks up by latching onto Internet
• Company revamps Web site to draw business
• Everthere settles into new offices
• Negotiating lease can be challenging
• Family support is important to fulfilling dream
• Work-life balance is one key to success
• Licensing lets buyers tote interest
• Logo-product partnership is beneficial to both sides
• Everthere Carriers staff works together for success
• New hires ease burden of increased workload
• Everthere Carriers takes new product to health exposition
• Preparation is important at trade event
• Firm wrestles with issue of foreign labor
• Cheap overseas work has its drawbacks
• Everthere Carriers bids farewell to productive 2005
• Everthere Carriers has come a long way
• Q&A with Everthere's Steve Threet






