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  Leasing office space
()
02/28/2003
Negotiating a lease for your office could be one of the most expensive decisions you make in Shanghai, and must be made with care.

Most experts recommend starters hire an agent. It is more expensive than doing it yourself, but it could save you from a costly mistake, especially if you are new here.

Once you find a property, you need to check both the property title and the status of the lease, and check personally.

Only corporate entities may lease commercial and retail space. On top of your rent, you will have to worry about utilities, a deposit of up to three months rent plus management fees.

While a pre-lease permit from the government should ensure proper construction, lawyers recommend you also work out a warranty clause in the contract.

There is a big difference between the "usable area" and the "construction area," which includes public areas such as elevators and the lobby. Naturally, rent is payable on the "construction area". Insurance is recommended but not compulsory. Most commercial landlords in Shanghai will not approve a sub-lease.

To keep things smooth with the landlord, it is considered a good idea to negotiate a grace period in your lease, just in case anything unexpected crops up. You may also try to limit the right of the landlord to enter your premises to just special circumstances.

It is the landlord's responsibility to maintain and repair the public areas, and a fee may be charged for repairs to your office. You need the landlord's permission to renovate your premises.

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