Tenant’s Guide to Understanding Commercial Leases When Searching For New Office Space, Retail Location or Relocating Your Manufacturing Business
5 Things You Should Know About Commercial Leases
Commercial leasing can be a very scary proposition for business owners. On a weekly basis, I hear “I don’t want to sign a lease that’s too long, in case we go out of business, I don’t want to be liable”. A business owners job, your job is to look at “big picture” and day to day operations and make decisions that will benefit the company today and five years down the road. That’s where it becomes very important to understand commercial leasing and finding the right space for success.
Here are a couple tips to help you, the tenant, better prepare for lease negotiations:
- Have a Budget and Stick to It: Plan for moving costs, and other monthly costs associated with your space. Plan for rainy days, it’s not always sunny in business.
- Tenant Improvements to Space: The longer and more secure the lease, the better your negotiation position will be to request upgrades to
- Type of Space Needed: Do you need warehouse space with a little bit of office space? Is retail your primary business? Do you need conference rooms? These are things you need to plan out before beginning the search.
- Know The Market: To avoid overpaying, you need to know what comparable space leases for in your market. A good COMMERCIAL REAL ESTATE agent should be able to navigate you through all of these steps, especially this one.
- Leasing Terminology: There are lots of different lease types like Triple Net (NNN), Modified Gross, and Full Service which may significantly alter the amount you have to pay on a monthly basis. You need to understand who is responsible for what when it comes to building maintenance, landscaping, etc.
Interested in Finding Commercial Space to Lease?
Contact Cory Turnbull to receive a list of commercial properties available for lease.
208-691-2995 or email@example.com