If you’re looking to invest in the future of your business with new office space, now is the right time to act. Commercial real estate rents are lower than they have been in years, and the evidence suggests that commercial office leases will remain cheap for the foreseeable future. Of course, the actual cost of your business lease is only the first step.
When you rent out office space for your company or retail space for customers, there are many factors to consider. A commercial lease is a multi-year commitment that will have a significant impact on the success of your business. In order to get it right the first time, make sure to ask these crucial questions before you sign anything.
1. Does the Location Make Sense for Your Industry?
This is the first and most important question for any real estate lease. It is essential that the location actually makes sense for your business. For example, can your employees all commute to the office at a reasonable time? What is the local footfall like for customers? Is the area safe? Is the building close enough to clients or industry partners?
These are hard questions to answer, so it is highly recommended that you use a commercial real estate broker who can offer specialized site selection, to help you find the perfect location.
2. How Long Are the Commerical Office Leases On Offer?
No two commercial real estate leases are the same. Some are on offer for as long as 10 years, while others could be as short as one or two years. You need to decide whether or not you are investing in a long-term location for your growing business. Always get a crystal-clear idea of the lease terms and how long you can expect to stay in one place on the same terms.
3. What Do You Get for the Price?
Any good commercial lease will offer so much more than just the space. Especially if you are paying a premium, you should expect additional services from the commercial landlord. Ask if cleaning, garbage disposal, and maintenance are included in the lease price. Enquire about on-site parking and whether this will cost you extra. It is important to know exactly what you are paying for.
4. How Much Will It Cost Long-Term?
Many tenants have the misconception that, once you sign the lease, those terms are locked in for the duration of the lease agreement. However, this is rarely the case. Most commercial leases will have a rent increase clause. For example, a lease might specify a 4% rent increase for every year of the lease. Always ask what you will be paying a couple of years from now.
5. Who Owns the Building?
This final one is surprisingly important. If your commercial landlord is some faraway LLC with no local presence, you will face delays and difficulties when trying to get any issues resolved. Find out who owns your building and how responsive the owner will be with your questions and queries. Local ownership is always the gold standard.
Better Business Insights for 2022
Negotiating the right commercial office leases for your company will help you grow to the next level in 2022. For more business insights you can bank on in the year ahead, we have got you covered. Make sure to consult our daily-updated Business guides for insights you can trust.