Before you start looking for a good commercial office or retail space for your small business,you need to sufficiently prepare yourself and learn all the ins and outs of commercial real estate. Being prepared will keep you from making hasty decisions that may hinder a positive return on the investment. Below are some insider tips to help make an informed decision when leasing a commercial real estate property space your business:
- Never settle for the first property you deem suitable for your needs: continue the search process until you have at least two other options. These extra options will work to your advantage because you will have an idea of what to expect during the lease negotiations. They also give you something to fall back to if the negotiations for your first choice go sideways.
- Since all commercial real estate leases have different terms and requirements,be sure to request for a copy of the lease for each of the prospective properties in advance.
- To help you decide what property is best suited for your business,prepare an electronic spreadsheet to compare different aspects of the properties. Some of the things you should put into consideration include the size of the office space in square footage,the lease price per square footage,the required lease term,and the incremental expenses (this should include things like maintenance fees and such). You can also jot down some notes about the pros and cons of each property.
- To avoid any future complications,it is important that you carefully analyze the terms of the lease before signing anything. Make sure you fully understand the total expenses you are expected to cover.
- Don’t get emotionally attached to a certain property until the negotiations are over. Emotional attachment might lead to you signing a contract that your business cannot live up to. The only thing you should probably be excited about during the search and negotiation processes is the prospect of your clients loving the location of your business.
In cases where you have more than three properties to choose from,you can narrow down the list by calculating the monthly base rents for each property then eliminating those that are way above your budget. The monthly base rent is calculated by multiplying the office space si.ze in square footage by the lease price per unit then dividing the product by 12.
If you would like more info on leasing commercial real estate space feel free to contactAustin Tenant Advisors