If you are ready to lease a commercial property for your business but you aren't sure what to look for in a lease, or what your obligations will be for the property, you want to hire an expert to help. There is a lot of detail that goes into a commercial lease contract, and you need to know what you're committing to and getting into.
A real estate professional that specializes in commercial transactions is ideal, and possibly an attorney. Here are a few of the things you want to discuss with your agent.
Know What Is Covered by Their Insurance
You will want to have renters insurance or business insurance when you lease the commercial property, but you should know what the property owner already has covered. You don't want to pay for coverage that they are already paying for, like flood insurance or exterior property damage. You only want to cover the things that you would have to pay to replace if there was an emergency or damage when it comes to commercial office leasing.
Understand a "Net" Lease
When you start to look at properties you'll notice that they may be offering a single, double, or triple net lease for you if you want to lease the property. The variation of leases will include details about paying for repairs, property taxes, utilities and other specifics. You need to know what is in your budget, what you are willing to do to the building, and how much responsibility you want to have.
Evaluate the Property
You want to look at several aspects of the property to make sure it will be right for you. Evaluate the following things:
- Surrounding businesses or demographic that will attract or repel business
- How curb appeal reflects your business
- Natural risks
- Convenience for consumers to get to location
You need to drive by the property in the evening, see what type of traffic is around the building during rush hour, and explore parking to make sure it's right for you.
You should put together a list of things that you must have at the property, so your real estate professional can narrow down the best commercial properties to meet your needs in your area. Once you have a few contenders, look at these different specifics to make sure you get a lease that you are comfortable with, and also a lease that you can afford to pay for a year.