Leasing commercial real estate is an important step for any business owner. Whether you’re launching a new business, opening a new location, or moving up to someplace a bit bigger, you want to make sure you choose the right place and get agreeable terms for your lease.
But the world of commercial real estate can be a bit complex. Before you sign anything, it’s a good idea to consult a commercial realtor to assist you. That said, here are some tips for leasing commercial real estate that will put you on a fast track to success.
1. Calculate All of Your Costs
It’s never a good idea to simply trust what the other side is telling you when it comes to your financial investment. Lease rates involve much more than just the rent. It’s important that you take into account things like taxes, maintenance, and fees you might be charged as a tenant while occupying the space.
2. Learn the Lease Term Definitions
Commercial leases contain a lot of terms and legalese that you may not understand. Take the time to become familiar with various terms, such as gross rent lease, modified gross lease, and triple net lease, and the way these rates will be applied to your business.
3. Consider the Length of the Lease
The standard commercial lease term is between three to five years. Shorter or longer lease terms may also be available. A longer term might be beneficial if you want to spread out the cost of lease improvements over a longer period.
4. Compare Market Rates
Make sure you review the rates being charged in the surrounding area for similar properties. Figure out the rate per square foot of usable space, so you are making the right type of comparison. Then, use this information to help negotiate a favorable rate on your lease.
5. Include the Right Provisions
Every possible contingency should be included in your lease agreement. This means that all possible situations you may encounter in the future are addressed, so there are no grey areas. Make sure the lease outlines who pays for improvements, insurance requirements, sublease and termination clauses, parking allowances, and much more.
6. Negotiate Unfavorable Requests
If your potential landlord has put some unfavorable requests in the lease, don’t be afraid to ask for their removal. They may not agree to this, but you won’t know unless you ask.
7. Don’t Be Afraid to Walk Away
If negotiations aren’t moving in the right direction or you just don’t feel comfortable with a particular landlord, don’t be afraid to walk away. There are plenty of other commercial real estate opportunities, and yours will materialize.
8. Hire a Commercial Realtor
As a business owner, you know a lot about your business and industry. But you may not be an expert in commercial real estate. When you decide to lease commercial property, it makes sense to partner with an authority on the subject who will look out for your best interests. This is why it’s advisable to hire a commercial realtor to help you get the most favorable terms.
Need Help Leasing Commercial Real Estate? Contact Us!
If you’re thinking about leasing commercial real estate, find out how Caldwell Commercial Real Estate can help. We are a seasoned team of commercial realtors and property managers in Charleston, SC, with over 80 years of combined experience in the industry. Contact us to learn more about how we can put our resources and knowledge of the area to work on your behalf.
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