Finding a commercial place for lease is an exciting time for any entrepreneur. It’s a healthy indication that business is thriving and scaling enough to require office space or storefront. During the search, however, it is important to remain diligent and well informed about the office space you’re renting. It is also a valuable review of your current business situation to ensure that your current space best matches your needs and related costs.
Understanding the basics of renting a commercial space is the first step to ensuring that you and your business are set up for success before you move in. Here is what you need to know as you continue your search for a commercial property.
1. Determine Your Budget
The monthly rent is just a part of the expenses associated with your commercial space. When you’re setting a working budget, be sure to include the following:
- Expenses for cleaning and maintenance
- Property taxes
- New equipment and furniture
- Business insurance
- Local permits
- Utilities
- Cost of moving and downtime (if any)
Each business has unique needs that will impact their monthly budget. Once you have a set budget with minimum and maximum allocations, you are better able to concentrate your search on a specific location.
2. It Will Take Time
While it can be tempting to sign the contract on space and move in right away, we encourage you to avoid making a quick decision on a commercial lease. Finding the right commercial office space for rent will require a significant amount of time. Once you find yourself ready to sign, take an extra day to think it over and iron out the details.
3. Location Is Important
The ideal location of your commercial space highly depends on your industry. Do you need a commercial space with high foot traffic? Would you prefer a location close to major establishments and public transport? When choosing the location, consider:
- Reviewing other establishments in the area that might impact your business
- Checking surrounding amenities such as financial institutions, bus stops, restaurants, grocery stores, and schools
- A location that will attract potential future talents
4. The Length Of Your Lease Matters
Committing to a long-term lease is great if you feel confident that your business will continue to grow and thrive in that location. However, if you’re a small start-up and the future of your business is unclear, you don’t want to be stuck in a long-term commitment. Another factor to consider is if your company outgrows the space and needs to move.
Before you sign the commercial lease, know your provisions and penalties for an early exit. If you’re unsure about committing to a term, consider co-working spaces as a solution.
5. A Commercial Real Estate Agent Can Give You An Advantage
If you don’t have experience in finding a commercial place for lease, a commercial real estate agent can help smooth out the process and help you navigate lease negotiations that you might not be aware of. This can include incentives, what type of commercial lease your business needs, and the tenant category that you would fall into.
The Bottom Line
A commercial lease is a binding agreement. To avoid legal issues or future problems, the critical process of choosing a commercial office space for rent is one that should be extensively researched and carefully negotiated.