Leasing commercial space is not the same as renting a property. If you really need office, wholesaling, or industrial sites for your company, rental buildings have their own set of key issues identified right away.
A proper lease from a commercial real estate leasing company assures that you can run and grow your business without unacceptable restrictions or disconnections from the homeowner. A well-negotiated (and written) commercial lease may also prevent you from getting court action – or, at the very least, place you in the best position if it is unavoidable.
Things to Focus on While Hiring Commercial Real Estate Leasing Company:
Here are some key terms to consider:
Rent:
The specifics of your rent payments are critical. For example, perhaps the space will need to be renovated to meet the needs of your company. Some landlords will agree to a reasonable “grace period” to complete the renovations before rent is due.
Another rent-related question is how long you must continue to pay rent after the lease expires. At the end of a lease, residents are sometimes required to remove changes to the building and restore the property.
Tenant Improvements:
As previously stated, you may need to make changes to the building before moving in to accommodate the needs of your business. These are referred to as “tenant improvements.” Negotiating tenant improvements before signing a lease is critical to avoid being stuck with a space you can’t use.
For example, it is critical to understand the following: the condition of the building to be leased; the types of improvements the tenant will make to the building and, how much control the tenant has over the improvements; whether the landlord will pay for any of the improvements, particularly if they may increase the property value; and who owns the positive changes.
Alterations During Tenancy:
Most commercial leases are for a long period of time – five, ten, or even twenty years. Your business may grow or change over time, necessitating additional alterations or improvements to the property. It is critical to address making changes to the building during your tenancy from the start so that you are not unable to tailor the building to your business needs.
End of Lease/Surrender:
As previously stated, it is critical to understand the condition of the building before moving in and which of your improvements or modifications to the building must be removed and restored when you move out. Based on the scope of the advancements, this could mean a lengthy process of negotiating the repair work with the landlord.
Insurance:
Make it clear who is required to maintain what type of insurance. Landlords will frequently maintain a property insurance policy (but will pass on the cost to the tenant). Landlords, on the other hand, may require tenants to maintain liability policies or other business-related policies.
Final Verdict:
Finally, hiring a real estate broker from a commercial real estate leasing company with experience in commercial leases will be beneficial. However, before signing a commercial lease, consult with an attorney who will be able to advise you on whether the language in the lease accurately reflects the terms of your agreement. Investing the time and resources to do so now may help you avoid problems later.
