Key Factors to Consider Before Leasing a Commercial Space
Every business requires office space to conduct its administrative, management, and marketing activities. As an entrepreneur, you should focus on finding the most suitable commercial property to rent for your business. The real estate market is growing and this is clearly demonstrated by the numerous commercial property available for leasing. Leasing commercial space is totally different from renting an apartment as there are numerous things that you have to look into. During the search for a commercial space, the landlords will offer a commercial lease contract that you will be required to go through. The clauses or terms of the lease contract should protect both parties but in most cases, the landlord is usually favored. Ensure that the lease contract contains clauses that are favorable to both the tenant and the landlord so that you can avoid issues. Choosing a strategic office space for your business play an important role in the performance and success. The article herein will highlight some of the vital factors that you should consider before leasing a commercial space.
First and foremost, you should check the leasing options offered by the landlord. The two most common options offered by a majority of commercial property owners are percentage lease and gross lease. In a percentage lease, you will be required to pay a base rent and a fraction of your sales to the rent. Additionally, the tent will be expected to take care of the maintenance costs and utility bills. It is commonly used when renting a retail space. In a gross lease, the tenant will be expected to pay all the fees according to the amount of space occupied. Therefore, you should compare the two options when choosing a lease agreement for your business.
Today, commercial office spaces are all over. As a business owner, you should be careful when choosing the most suitable location. Ensure that the commercial space is situated in a place that is ideal for your business activities. Proximity to the target market and resources is key when deciding on the most suitable location. If you intend to establish a business where the customers will walk in, you should give special attention to vital features such as the parking lot and security. Choosing a strategic commercial space will ensure your business thrives in this era where competition is on the rise.
Carefully go through the agreement presented by the landlord before leasing a commercial space. Do not rush into signing the agreement as you might end up having issues with the landlord. Take your time and go through all the clauses to ensure that it favors your business. In some cases, you can negotiate with the landlord regarding the terms of the agreement which will require you to hire a broker or lawyer. Finally, you should make financial considerations. Establish if the rent and maintenance fee is sustainable for your business.
As a business owner, you need to find the most suitable commercial space for your business operations. Before you lease a commercial space, you should consider the above-discussed factors.