Considerations When Leasing Commercial Property
Deciding to move your business to a different location can not only cause a disruption to your business but it can also be a huge expense that cuts into your bottom line.
However, if the current location of your business is not up to par or it may be too small, moving your business can help to increase your employee’s productivity, raise their morale and make your business more profitable. Before you decide to move your business, there are some factors that you should consider.
What Are Your Needs From A Commercial Lease Property?
One of the first things that you will need to think about is your needs when you are considering leasing a new property for your business. Someone who is experienced with commercial leasing will be able to provide you with helpful insight with the entire process. A reputable commercial leasing agent will ask you a series of questions before he or she begins to show you commercial properties for lease. These questions will help you with issues that you may have not considered before.
Some of the questions they may ask are:
- Does the space you currently occupy project a positive image to client?
- Is your current location easy to access?
- Could amenities such as a conference room, a loading area or additional car-parking help to make your business more productive and profitable?
- Does your business need more exposure or a better location?
- Are you using your current space efficiently or are you losing money on unused space?
- What method do you use to determine how much space you need for your business?
When Is The Right Time To Move?
If it has been determined that you need to relocate your business, you should decide on the best time to do so. For most businesses, it is best that the owner begins searching for a new location six months before the current lease is set to expire. This will provide the owner enough time to scout various options, find a suitable location and complete the improvements that are necessary. Six months is also enough time to give notice to the landlord.
If your business has somewhat unusual requirements then you might want to allow more than six months for the job.
What Is The Current Commercial Leasing Market Like?
The next thing that a business owner will need to do is take a look at the market. Although you can do this on your own, it is best to hire a commercial leasing agent who can help with this process. You should also be aware that many of the best properties that are on the market are not listed, nor do they have a “for lease” sign hanging outside of the property. However, a leasing agent who has knowledge of the market will know the properties that will be available before the information becomes public knowledge.
Another advantage that a leasing agent provides is that they can level the playing field in your favor. They will be able to give you information that is not known by the general public.
Finally, you will have a main contact person who you will work on your behalf while you are busy focusing on other areas of your business.
Negotiate the Leasing Deal
The final step is not the move, but the negotiation process. It would be in your best interest to be focused on at least two properties. This way if negotiations fall through with one property, you can start working on the other property. This strategy will prevent you from placing all of your eggs in one basket.
When a tenant is represented by a reliable commercial leasing agent, the tenant will gain significant information about the market. This will allow the tenant to secure a space that will provide them with favorable market conditions.
Talk To Your Lawyer Before You Sign the Lease
For most people, negotiating a commercial lease is a rare activity and so they do not fully understand the legal requirements or commitments they might be making. It is vital to remember that a lease is a legal binding agreement and so they landlord can enforce the terms of that lease. A lease will often have personal claims against the business owner or the Directors of a business if the tenant fails to make payments. A commercial lease is generally much stronger and more punitive than a residential lease on a home. So, to prevent any shocks and to fully understand what you are committing to with the new lease for your office, warehouse, retail outlet or any other commercial premises, you must get advice from your lawyer first.
Often a contract or commercial lawyer will be able to point out areas that you can negotiate with the landlord or through the letting agent. Some lawyers will even carry out the negotiation on your behalf.