The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
When you’re looking to lease a commercial building or office, it can be intimidating if you’re new to the process. You may not be sure how to get started or how to avoid common mistakes. Here is everything you need to know when securing commercial leases to ensure you can enjoy a smooth process and make the right selection for your business.
There’s a lot of real estate terminology involved with the contracts of commercial leases, making it necessary to understand the terms. Reading the fine print can help you to avoid making any mistakes or having surprises. Some people aren’t aware of the additional items that are added to the lease agreement, which include utilities, maintenance, and real estate taxes. You need to be aware of additional costs involved, which can influence if you can afford the commitment. There should also be provisions for terminating the lease agreement prematurely, subletting, or expansion.
Many people make the mistake of trying to secure a commercial lease without the help of a professional. Although hiring a professional to assist you with the process will cost money, it can help you to avoid overlooking different nuances or terms that you may not be aware of, which can be costly.
It’s important to think long-term and plan for the future when you commit to a commercial lease. Understand the long-term effects it can have on your business if you don’t stay in one place for too long. The neighborhood where you settle will also affect your reputation, image, and brand, making it necessary to understand that where you’re settled and for how long will have a positive or negative impact on your business.
Understanding the financial commitment that comes with securing a commercial lease to ensure you can afford it. This requires understanding the financial state and health of your business, which includes the annual revenue you’ll earn and your current cash flow. The level of risk involved also needs to be considered.
Knowing what to expect when you secure a commercial lease can allow you to be more prepared and avoid costly mistakes that can affect the future of your business. It will also offer peace of mind when you find the right location that you can afford and have a better understanding of the terms of the agreement before the paperwork is completed.
About the Author
Kara Masterson is a freelance writer from Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.