Commercial property rental fees can account for a significant amount of business running costs, making it prudent to think innovatively when leasing office, industrial, or retail space. If you get your choice right, your business stands a high chance of surviving the shocks of the very dynamic real estate industry. Here are some tips for acquiring commercial property rentals.
Location, Location, Location
The location sits at the center of everything that matters to your business. Potential customers and clients will most certainly prefer a location that is convenient to access, according to Bloomberg. Will vendors, suppliers, customers, staff, and other visitors have easy and free access to your premises, or will they take a parking ticket?
You will also be thinking about proximity to your associates, customers, and service providers. A commercial property that is located close to public transportation services can serve the interest of your business and stakeholders. If your customers or clients are students or educational professionals, leasing commercial spaces close to major educational institutions gives you a competitive edge, as highlighted by Sterling Land Company.
Space Requirements
How much space does your office require? You can start by scrutinizing the size of your staff and operations. For instance, digital and online-based firms may have smaller requirements for office space, according to Forbes. They could consider options such as co-working or sharing office space. They could also think about the possibility of subletting any extra space to save on rental fees.
Comparable Market Analysis
A comparable market analysis helps you determine the fair valuation of the type of commercial space you are leasing. It involves the comparison of all aspects of the commercial property rental in question with similar ones in the same location. You may want to get the help of a real estate appraiser for this.
Lease Terms
The U.S Small Business Administration (SBA) recommends that you take time to study the lease agreement, and if possible, seek help with the legal interpretation of the terms. From the outset, it helps to know what you are paying for, as well as your obligations as a tenant. Since commercial leases vary, you will want to know what yours says about maintenance and repair. Does the landlord require you to address the maintenance of systems such as air conditioning and plumbing? Also, find out if you are allowed to sublet or co-share rental space.
Negotiate Hard
Lease terms and rental fees are never cast in stone until you sign a contract. Many landlords are open to negotiations and can make substantial concessions in your favor. It is even possible for your landlord to add a few clauses in the lease to address your requests on issues such as co-tenancy, the exclusivity of use, and sublease, according to SBA. If you are in business for the long haul, it may make sense to choose a longer lease if it goes with lower monthly fees.
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Yes, certain businesses thrive well in certain neighborhoods, especially those associated with the class. In this case, make sure that the classy location and commercial property rental will offset the higher taxes and business license fees that come with these, cautions Bloomberg.
Finding the right commercial property calls for thorough due diligence on your part. You can start by looking at market conditions, analyzing your customer requirements, determining your needs for space, and understanding lease contracts. Addressing the issues that matter the most to your business will most certainly lead you to some cost-effective and strategically-located commercial rental spaces.