When leasing commercial property, there are a number of factors you’ll need to keep track of to ensure the property fits your needs. We’ve put together a list below for you to check while negotiating your contract.
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1. Real Space
The first factor to track when leasing commercial property is to determine the true amount of space you have available to your business. When leasing a space, the usable square footage is usually less than the rental square footage.
In some buildings, you may have use of common hallways, bathrooms, storage areas or other spaces which aren’t included as part of your rental square footage.
2. Lease Term
Be mindful of what your company needs when discussing lease terms like amount and length. The longer your lease term is, the more power you’ll have in negotiating your monthly payments. The shorter your lease term, the less flexible the leasing company will be.
A longer lease also locks your business into the space longer, which means you’ll be less able to respond to the need for more space if your business grows.
3. Associated Costs
When leasing commercial property, be aware of the costs associated with the property which are outside of your normal rent payment. This may include maintenance costs, insurance, property taxes, utilities and more.
It’s important to have a clear picture of which costs you will be responsible for.
It’s easy to overlook improvements when leasing commercial property, but you’ll need to look at these issues in your lease.
You may need to make improvements or modifications to a space to serve your needs, like new seating, carpets, cabinets and more. It’s important to know whether you need consent to make changes, and who owns those improvements after the lease ends.