Leasing commercial real estate can seem like an overwhelming process, but it helps if you know what to expect and how you should respond to issues as they arise. Whether you're looking for an office space or a storefront, these tips will help you complete the transaction successfully.
Start with the space's location. If you're opening a retail store or a restaurant, for instance, you'll want a space that potential customers can see from nearby streets. Alternatively, if you're starting a business that deals primarily with online or telephone correspondence, a more discreet location will do.
Similarly, you'll want a space where you can afford the rent and that offers enough space for your business. Don't just consider square footage. A retail storefront, for example, needs space for merchandise storage as well as display. You might also need ample parking.
When leasing commercial property, you'll want to know when you can get out of the lease. For instance, how much will the landlord charge to cancel the lease? If you fulfill the lease in its entirety, what is the lease-end protocol?
You can also negotiate issues like tenant improvement allowances (money you can use to make improvements to the space so it better suits your business) and even the rent amount. If you don't feel comfortable negotiating on your own, consider hiring an attorney to help negotiate and to review a commercial lease.
An industrial business typically can't use a space that has commercial zoning because of noise issues and other concerns. Even for properties that are zoned commercial, however, you can't always operate a specific type of business there.
For example, ordinances and zoning requirements might stop bar from opening near a school. Alternatively, some zoning restrictions limit the number of patrons a business can attract based on the building size or available parking.
Before signing a lease, investigate the zoning and land use requirements to protect yourself. Starting a business requires considerable forethought and strategy. This is especially true when it comes to leasing commercial property. The more you research in advance, the easier it becomes to pick the perfect location and structure