Leasing a property for business purposes can be a great way to get started in a new business venture, or to expand an existing business. Choosing to rent a commercial property can be a daunting task, so it’s crucial to know what you’re getting into. It is important to take the time to read through the lease agreement carefully and to ask any questions that you may have, before signing. Here are a couple of things to watch out for when searching for business rental property.
Business and residential leases differ greatly
There are a few key differences between commercial and residential leases that you should be aware of before signing on the dotted line. For starters, commercial leases are usually for a longer term than residential leases – anywhere from 3 to 10 years is typical. This is because businesses need stability and time to grow, whereas most people only stay in each home for a few years. Commercial leases also tend to be more expensive than residential leases, both in terms of the monthly rent and the upfront costs. This is because commercial properties are usually larger and more expensive to maintain than homes. In addition, businesses often have more stringent requirements regarding things like insurance and liability. Finally, commercial leases typically include a clause that allows the landlord to terminate the lease if the business is not doing well. This is not the case with residential leases, which offer more protection to tenants. Keep these differences in mind when you are considering signing a commercial lease.
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Don’t hesitate to negotiate
When negotiating a business lease, it is important to consider all the terms and extras that may be included in the agreement. Some common terms that are negotiated include the length of the lease, the monthly rent, and any additional costs or fees that may be associated with the property. It is also important to consider any extras that may be included in the lease agreement, such as parking or storage space. By considering all the terms and extras that may be included in a business lease agreement, you can ensure that you are getting the best possible deal for your business.
Do the research
Find out how to negotiate a lease by talking to various landlords. Ask questions, explore different incentives, and get a feel for the process. It will help you gain a better understanding of the market and prepare you for actual negotiations once you have an idea of what’s available, what you want, and what you can ask for.
Consult someone who can act in your best interests (like an attorney, accountant, or lease consultant) as you move through the negotiation process. An agent who is experienced in commercial real estate can not only help you find the right location but also provide you with lease negotiation advice.
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Understand rental rates and space
Before committing to a lease, research the rental rates in your area to ensure that you are getting the best deal. Consider factors such as location, availability, and amenities when assessing the rental rate. Additionally, compare the terms and conditions of each lease to make sure that the rate is fair and agreeable. Finally, don’t be afraid to negotiate with the landlord to get the best deal possible. With a bit of research and negotiation, you can get the best rental rate for your business.
It is important to know how the landlord calculated the unit’s space. Is it based on the actual square footage and is it accurate? Start your search for a specific unit size by looking at smaller areas within the building. The landlord may offer incentives to entice you to rent a larger space if you ask about a smaller space first.
It’s all about location
You can make or break your business in your new commercial space depending on your business’s location. The best location is one which considers all the factors that are important to your business and then finds a property that will maximize your return on investment. Accept that finding the right spot won’t be an easy task and take your time researching the area, tenants, traffic, and other factors.
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As a last thought – always be prepared to give up a deal if it doesn’t meet your expectations. You cannot negotiate the best deal for your business if you are not ready to walk away from the table, despite how emotionally attached you might be to a potential deal.