There’s a saying that the devil is in the details. This is certainly true when signing a commercial property lease. In order for your investment to give you the returns that you expect you need to know exactly what is covered by the lease. After all, you certainly don’t want to be faced with unexpected costs after you have signed the lease.
If you are planning to sign a commercial property lease there are many factors that you should take into consideration?
Here are the top 4 factors to consider before signing a lease on a commercial property.
1. Overall Cost
One of the most important factors to consider is the overall cost of the lease and what does the rental cost involve.
For example, are there extra costs for any common area maintenance? So, will you have to pay extra for the upkeep and maintenance of courtyards, stairways, and entrance ways? You should also establish if the rental covers utilities, trash collection, property insurance, and taxes.
2. Traffic to the Property
Depending on the type of business you have and the commercial property you need, traffic is an important consideration. For example, if your business relies on foot traffic you should find out the numbers of people passing by. Are there any large stores around that bring in people to the area? Are any large stores planned? What about parking? Is there enough that customers can stay long enough?
A good commercial real estate agent will be able to give you the figures you need to make an assessment.
3. Facilities at the Property
You will also need to find out what facilities at the property you can use. Are there private restrooms for your business employees, or will they have to share ones? It is also wise to find out about the property’s security arrangements and determine if they are adequate for your company’s needs. Is there high-speed broadband Internet access that you can use?
4. Terms of the Commercial Property Lease
The length of the lease is an important factor to consider before signing a commercial property lease. Moving frequently can disrupt your business and your customers. However, you also need to take into consideration the possibility of expansion or taking on more employees. Longer leases usually give you the chance to negotiate better deals. One very important piece of information to find out is what happens when the lease finishes. Will you be able to get a sign a new lease and what will the proposed rent be?
So, before signing a commercial property lease, make sure that you know exactly what it includes.
