In the commercial real estate business, it pays to do your research. The number of commercial real-estate specific words can be a little bit intimidating to those unfamiliar with the subject. However, by doing your homework, you can really ensure you know what you are getting into prior to signing any contract. The chance to save your company thousands of dollars should not be passed up. Learning the lingo will definitely serve you well. We’ve put together a list of 4 crucial commercial real estate terms for anyone looking to brush up on their commercial real estate lexicon below.
When you are looking for retail property for lease or retail property for sale, you will most certainly have to deal with a Landlord Representative. This is essentially the leasing and/or agent for the property in question. They are the person acting in the best interests of the property owner or landlord, not necessarily you. A good landlord representative possesses lots of experience and great negotiating skills. They know exactly how to craft the best deal for any office space for lease or commercial real estate property for the landlord.
If you are looking for commercial real estate or office space for rent, you will need to know about this term. There are three Building Classifications for office buildings. Class A Buildings are top of the line, higher-end spaces with great locations and amenities. Class B Buildings are generally average buildings. Finally, Class C Buildings are usually much older and in less desirable locations.
Letter of Intent
Whenever you are putting the finishing touches on negotiating a commercial office space lease, an LOI always come into play. The Letter of Intent is a written document used to summarize all of the terms of the lease and solidify the tenant’s commitment towards renting the space. It usually comes before signing the lease agreement and can be either binding or non-binding.
This refers to changes or alterations a tenant can make to the property to better suit their needs. Floorings, air conditioning, painting, security, you name it. Tenant improvements should be negotiated prior to signing a lease.
The terms listed above should provide lots of help for those new to the commercial real estate world. We highly suggest going into any commercial real estate deal with a basic knowledge of the above. If you are looking for professionals with years of experience in commercial real estate to help you gain an edge in your deal, look no further than Rakow Commercial Realty Group.