Why You Should Check Internet Pricing Before Signing the Lease

When leasing commercial space for your business, it’s crucial that you take the internet pricing into consideration. If this comes as a surprise to you, you’re not alone—plenty of small-business owners think of everything except the internet costs when they’re looking at commercial space. They look at the actual square footage, the parking, the proximity to their client base, or even wheelchair accessibility. These are all valid considerations for a commercial space. But if you overlook internet pricing for your commercial space, you may end up regretting it after you see the huge bill.

So if you’re in the market for a new commercial space, either because you’ve outgrown remote operations or because your former space is just too small, don’t go into the real estate search with the misunderstanding that internet costs are standard wherever you go. To fully understand what affects these internet prices and how you can avoid paying hefty bills after you sign the lease, keep all of this in mind:

Understanding Internet Costs

As we mentioned, most businessowners assume that the internet is going to be priced the same wherever you end up leasing space. But there are plenty of things that affect internet costs, including:

• Lack of competition, as only certain internet providers are allowed to service that specific space based on landlord agreements
• Outdated infrastructure, as you could be looking at an older building that supports only older DSL or cable connections, not fiber-optic cables or ethernet needed for modern connections
• Higher bandwidth and security requirements compared with standard residential plans

Because of all this, internet pricing varies. Your business could be looking at an internet price of $100 per month at one building and then $1,000 per month at a similar commercial space right down the street. Such a huge discrepancy could have a huge effect on your operating budget.

Using Internet Costs as a Negotiation Tool

Let’s say you discover the perfect commercial space for your business. It’s in a great location, and it has the parking space needed to accommodate your employees and your clients. Plus, the inside of the building has the right layout and even a little more square footage than you need. It seems like the ideal fit. The only problem is that the internet is priced way higher there than it is at some of the commercial spaces that aren’t as good a fit for your business.

Does this mean you’re stuck paying more for internet if you want to lease the space? Not necessarily. When you know the potential internet expenses ahead of leasing, this gives you some leverage during negotiations. You can say, “This is a great space and the rent is reasonable—but the internet pricing is a dealbreaker.” This candor is especially helpful if your future landlord sees you as a great fit and wants to work with you—they might be willing to negotiate a lower rent price to offset the high internet price or even subsidize the internet expenses. If internet is $200 more per month at this space but the landlord is willing to lower the rent by $200 per month, it balances out. Even cutting $100 off the monthly rent would meet you halfway.

Taking this proactive approach ensures you’re not blindsided by unexpected bills after you sign the lease.

Investigate Early and Plan Ahead

The best way to overcome the sticker shock of unexpected internet pricing is to stay one step ahead. Internet should be among the primary factors you consider when looking at commercial properties because you’ll know whether you need to negotiate or whether you might need to give up on the property altogether. It prevents future headaches and financial surprises.

How should you do this? Consider steps like:

• Emailing the property manager
• Use contact forms on the real estate website
• Discuss your concerns with your commercial real estate agent

And on the subject of real estate agents, here’s something to consider if you happen to be a real estate agent who is reading this: You play a pivotal role in representing lessees. Advise your clients to investigate internet costs to ensure they make informed decisions and help them gather information about provider options, potential costs, and negotiating favorable terms that include reasonable internet provisions.

Bear in mind that in some cases, landlords may have exclusive agreements with internet providers or restrictions that limit competitive pricing. By raising the issue during negotiations, you may prompt landlords to reconsider or facilitate access to more affordable internet options. This proactive stance not only benefits your business financially but also enhances your negotiating position.

We’re Here to Advise

Are you considering leasing commercial space? Don’t forget to include internet costs in your due diligence checklist, and if you have questions on how this works—and what options might be available for the commercial space you’re considering—our team at Office Phones Plus is available to advise you. Contact us today for expert advice on navigating lease negotiations and optimizing operational expenses by calling 410-834-4900.