Having access to the right office space can significantly contribute to the overall success of your business. If you have never rented out a commercial space before, navigating the leasing process can be challenging.
Here are three tips that you can use to help ensure you are able to secure the best possible deal on your commercial real estate in the future.
1. Identify factors that could affect your rental rate
Unlike residential properties that often have a set rental rate, the cost of leasing a commercial property can fluctuate over the course of the lease agreement. Before you sign an agreement to rent a commercial office space, you must ensure that you understand the factors that could affect your rental rate in the future.
Some commercial landlords include language in lease agreements allowing for rental fees to be based on the Consumer Price Index (CPI). The CPI is a number that helps determine fluctuations in the cost of basic goods, and it can impact the profitability of your business.
Be sure to ask potential landlords if rental rates are influenced by the CPI, and carefully determine how CPI fluctuations could affect your ability to pay for your commercial office space.
2. Know your insurance obligations
Just because you are not purchasing a piece of real estate doesn't mean that you don't have to worry about insuring your office space. Many commercial landlords will request full indemnity as part of any commercial real estate offerings, so you should determine how the cost of property and renter's insurance will affect your ability to make rental payments on time.
Understanding your insurance obligations prior to signing a commercial lease will help you locate an office space that will be affordable in the future. Be sure to identify the property owner's liability exemptions and speak with an insurance agent to determine how much you can expect to pay to insure your new office space.
3. Ask about relocation clauses
If you plan to rent out an office space in a large building with multiple commercial units, you should check your lease agreement for a relocation clause.
In the event that a larger entity wants to rent out the unit adjoining yours and they need additional space, your lease agreement may give your landlord the right to relocate you to another space within the building that is similar in size. Knowing that relocation is a possibility will help you remain prepared to make a move if necessary.
Understanding what to look for when leasing out commercial office space will help you find a space with a lease agreement that meets your company's needs (for more information, click here).Share
1 September 2016
When I started looking for a new house a few years ago, I realized that I had no idea what I really wanted. I knew that I wanted a place that had been updated recently, but apart from that, I was completely in the dark. After evaluating my budget and considering my options, I decided that it would be a good idea to go around with my real estate agent to help me to find a place. My agent was incredibly helpful, and I was able to narrow down my choices within a few hours. This blog is all about making the ever-important decision of becoming a homeowner.