Entering a commercial lease agreement for office space or an industrial facility can be daunting. With complicated terms to comb through and a lengthy search ahead, you may not know exactly how to best proceed. As you move forward, avoiding these common pitfalls will help to ensure that you get the best deal and the best commercial space possible for your needs.
Flying Solo
As a business owner or representative for a large company, you frequently enlist the help of experts to help you make decisions. You wouldn't dream of preparing a complex financial document without the help of an accountant or making a legal decision without consulting your attorney. Commercial real estate is every bit as complicated as law and finance and similarly, requires expert assistance. Enlisting the help of a tenant rep broker is a must for a successful transaction. With their knowledge of the market, brokers are powerful allies at the negotiating table and can help you discover properties you might otherwise never have a chance to see.
Forgetting to Check the Law
Even the most diligent of companies may neglect to think about zoning laws and local regulations when considering commercial real estate. Don't make the mistake of assuming that if a landlord is willing to rent to you that companies in your industry are permitted to operate in the space or building that you're considering. Laws frequently change, and landlords may not stay abreast of all of the amendments and rewordings. Before you sign that lease, check the laws yourself to avoid facing fines and being forced to relocate in the future.
Signing the Lease As-Is
When you have found the perfect unit or building for your company, it's natural to want to close the deal as soon as possible; however, signing the first version of a lease agreement that is passed your way will most likely mean leaving money on the table or missing out on concessions that can benefit your company. The first version of a lease will always favor the landlord and may leave out beneficial clauses like the right to sublet or the right of first refusal. Think of the initial lease as a working document, one that should be carefully analyzed and negotiated.
Looking Only at the Space
Of course, the space or building that you're planning to lease is your primary concern, but more goes into finding the perfect match for your company. Be sure to consider common areas, hallways, lobbies, parking and grounds when deciding which space is right for you. After all, you don't want your employees to end up late every day due to a lack of available parking spaces nor do you want clients passing through a dingy entryway to get to your office.
Be sure to also consider the location of the property. How easy is it to access? Are there service businesses, retailers and restaurants close by? Will you have any major competitors as neighbors? Are the surrounding businesses in line with your brand? Asking yourself these questions can help you ensure that you've chosen the prime spot, not just the ideal space.
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