4 Tips for Leasing a Commercial Property
Whether a business is expanding or just starting out, renting a commercial space is a huge step. Depending on the type of the business, the location and traffic of the area can really affect its success. Business owners should be sure the potential space has all the right features needed for making the day-to-day operations of the company run smoothly. Before signing their lease, they must also understand their lease agreement and be aware of what other expenses they may incur. Here are some tips business owners should consider when looking for a commercial property for lease.
Before signing a commercial lease, it’s important for businesses to understand what fees they will incur in addition to monthly rent payments. Is the tenant responsible for lawn maintenance, trash collection, snow removal and repairs? Unlike with residential properties, these items are typically up to the commercial tenant. Business owners should ask their potential property owner what kinds of costs they will incur and also ask for examples of these costs. Those who are considering renting a shared space should ask how the maintenance, upkeep and utility fees are measured. Calculate all of these costs and make sure the property is something the business can afford.
Does the building come with a security system? Does it have central air, an HVAC system, and pre-wiring for internet access? Make sure the building has all of the essential features the business will need. For buildings that are shared with other tenants, know whether any of the amenities are shared, such as the restrooms. Companies that depend on foot traffic like restaurants or retailers should be sure the building has enough parking spots to serve its customers. To be sure there is adequate parking, ask the landlord or real estate agent for traffic and parking counts.
Business owners should plan ahead with their new commercial space. If the business has the potential to expand within the next couple of years, see if it can grow at the new location. Commercial tenants may want their space to be large enough should they need to hire more employees or expand their services.
Business owners must decide if they want a short-term or long-term lease. Most small businesses or businesses that are just starting out will choose a one- to two-year lease with the option to renew. This allows them to negotiate special terms. Regardless of the lease term, know whether the rent will increase each year. Most importantly, business owners must be sure they have read and clearly understand the lease agreement before signing it.