5 Important Things to Remember When Leasing Commercial Property
Leasing commercial property is a crucial step towards growing your business and setting yourself up for future success. There are many things to consider prior to signing on the dotted line. Commercial property for rent is usually abundant, but not every property will be right for your business needs. Don’t avoid doing your due diligence when seeking commercial property for rent because it can come back to haunt you.
Finding the right property can be a challenging and time-consuming endeavor. That’s why working with commercial brokers like the professionals at the Rakow Group is such a great decision. It really helps to have a professional broker with vast experience to assist you in navigating the commercial leasing market. Below, we will go over 5 important things to remember when you are leasing commercial property.
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Ask Who Is Responsible for What
After you’ve found the ideal commercial property for rent, it’s important to ask your future landlord who will be responsible for what. Who is responsible for maintaining the property? Who will pay for repairs on the premises when it is necessary? Who will take care of managing any equipment on the property? It’s very critical to go over these details with your landlord prior to signing a lease. The lease agreement should clearly spell all of these details out.
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Determine if the Rent Is Fair
Another really important thing to remember when leasing commercial property is to determine if the rent you will pay is fair. You can take a look at similar properties in the area to get a good baseline for what is an appropriate rent price. Make sure you understand any percentage-based rent increases as well.
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Look Out for Additional Clauses
A lease contract will often contain additional clauses that are very important to look out for prior to agreeing to anything. If you are leasing space in a shopping center, you should ask if you have to comply with any special restrictions. Things like contributing to the center’s marketing activities can be costly.
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Establish Your Tenant Rights
When you are negotiating a lease for commercial property for rent, it’s important to establish your rights as a tenant prior to signing the contract. Determine if the lease has a Right of Assignment clause, which allows you to transfer the lease to a new tenant if you need to. Look out for early termination penalties and what the process is for terminating the lease, if necessary.
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Choose the Timeframe that Is Right for Your Business
It’s common for landlords to want to lock you into a long-term lease. That way, they don’t have to find a new tenant for a while. However, if you are a startup or a newer business, you can choose a shorter term timeframe with the option to renew. You know the best option for your business, so don’t be afraid to ask for the timeframe that’s right for your unique situation.
