Beginner’s Guide to Leasing Retail and Office Space

0
19
Leasing Retail and Office Space

The art of leasing commercial properties such as a retail or office space can be a daunting task. It is important to consider that the commercial lease is going to be the bread and butter of this business agreement. When embarking on this task it is critical to keep an eye out for things that may be left unnoticed. One of the most important elements of this is to have a commercial property broker help you along the way. It is their job to ensure you are getting the best deal possible for the retail or office space you will be leasing out. Together, you can reach an agreement on all the terms and conditions in your lease. Having a positive experience with the commercial lease and all parties involved is dependent on how well prepared you are going into this negotiation. The professionals at Utopia Property Management will ensure you are receiving the best deal possible when going over your commercial property lease. 

Consider the costs 

All of the finances involved need to be calculated and considered from the start. This involves aspects that far exceed the cost of rent. Make sure to understand the taxes and fees that will be charged, as well as upkeep the commercial space requires. Who will be paying for the utilities? What are the insurance rates for the property? Who will pay for it? Make sure you know how the calculations are done on the lease in advance so accuracy and fairness are maintained. 

Inspect the Contract 

Lease agreements often contain confusing clauses and an incredible amount of paperwork which can be overwhelming. Once the contract is signed, you will now be legally bound to the terms and conditions pre-arranged in the lease. It is suggested to have a lawyer specializing in commercial real estate law go over these documents. Their professional counsel can put into perspective what you would be agreeing to within the contract.

Lease Options 

There are different types of leases used when it comes to leasing a commercial property. Make sure to understand the wide spectrum of commercial leases that are available on the market. Educating yourself on the different types of commercial real estate leases will help you understand what is expected before walking into a negotiation and coming to an agreement. Remember that commercial leases are not absolute, and can always be negotiated depending on the setting.  

Length of Lease 

Most commercial leases range from three to five years. Usually if the lease has a long-term length the overall price will be lower. It is important to understand the commercial properties needs so that a longer-term lease may be negotiated.  Deciding on a long-term lease can give you leverage on the price you will end up paying. Still, be sure to take the necessary steps to retain malleability in the lease to maintain the future of the property. 

Market Rate

Be sure to research the property values of all the land within the area. Most places will be pricing per square foot of the usable space. Knowing this will help you understand the true rates for the property and will enable you to have an argument on pricing. This is a crucial part in the lease negotiation. The scope of understanding here will place you in a successful position. Knowing this allows you to back up requests with a real time understanding on the market data. It is also suggested to be educated on zoning laws so a negotiation is made in the allowable space. 

Price of Surrounding Properties 

Knowing what other companies are charging for similar commercial spaces in the area is essential when bargaining for a lease. This assists you in being able to know whether the fees quoted are aligned with the current market prices. In a perfect world, your first option would be the ideal selection for your commercial space. This is rarely true in real estate. Being conscious of the businesses needs, location, neighboring communities, and closeness to major interstate systems will be key in matching your ideal property with these factors combined with the lease. 

Maintain Professionalism 

Make sure to display at all times a professional and respectful demeanor. All landlords are seeking someone to fill their space. They want to make a great deal as well. Some landlords may seem stubborn and unwilling to be reasonable. This should never be reason to break your professional attitude. It should also be noted that the desire to obtain the perfect property should never lead you to compromise on your values. Always deiced what’s best for your business interests in good faith.

Read Also : How to Get Your Offices Ready After Working from Home