Whether you are starting a new business or your current business is growing, commercial leasing is something you will likely have to deal with at some point. In many areas, leasing a building is the only choice if you want your business to operate in the area of your choosing. Commercial buildings are expensive to purchase, and a lease is often the more economical option. However, leasing a commercial property can be quite the process. Here are three tips to make it a little easier.
Ask About Usable Vs. Rentable Square Feet
When searching for commercial properties for your business, having the right amount of space is key. However, there are a few different ways in which commercial building space is described. You may hear a space described in terms of either usable square feet or rentable square feet. Usable square feet is the amount of space that is occupied solely by the tenant. Rentable square feet takes shared square feet, such as hallways and other spaces, into account along with the square footage that will be used by the renter. Take a close look at the usable square feet in order to ensure that there is enough space for your business's needs.
Consider Lease Length Carefully
When it comes to commercial leasing, most landlords prefer lease terms between 5 and 10 years. However, long term leases are not the right option for every business. Start ups and other companies that are growing quickly may want to negotiate shorter leases. Adding "out" clauses to the lease is also a must. These clauses give renters the option to sublease or sell their business to a new owner without violating the terms of the lease. It's important to consider how your company may grow and change when signing a lease for a commercial building.
Hire A Real Estate Lawyer
Commercial leasing can be complicated. Navigating all of the terms and other requirements of this type of leasing can be difficult to do without outside help. Hiring a real estate lawyer who has experience in commercial property leasing to negotiate the lease is often a good strategy. Most real estate attorneys charge by the hour. You can expect to pay between $150 and $350 per hour for an attorney to negotiate the lease on a commercial property for your business.
Leasing a commercial property is a step that many business owners find themselves taking to get the location they desire for their business. If you are looking into leasing a commercial property, there are a few things to consider. It's important to look at both the usable and the rentable square feet when looking into commercial buildings. Also carefully consider the leasing terms and how long you plan to stay in that location. A real estate lawyer can help you navigate the process and ensure that the lease suits the needs of your business.
Share7 February 2018
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