Things to Know Before You Start Looking For Commercial Space for Your BusinessThere are many types of commercial spaces that you can rent and many things to consider before signing a lease. The type of space you rent can affect the type of lease, the price per square foot, and the wrong location can hurt your business, while the right type of space and location can help your business to grow.
- What Types of Commercial Properties Can Businesses Lease? Should you rent space in a business park, industrial park, or retail location? Different types of commercial real estate properties all have pros and cons. Learn how to determine what type of space is makes the most sense for your business.
- Commercial Industrial Spaces - Things to Consider When Leasing: Commercial industrial space can also be used in place of traditional commercial office space, usually at substantially cheaper prices. There are pros and cons, advantages and disadvantages to leasing commercial industrial space.
- Pros and Cons of Subleasing Commercial Spaces: Commercial subleases offer pros and cons to business owners. Before you sign a sublease, be sure to weigh the advantages and disadvantages of subleasing commercial space.
- How to Find Available Commercial Spaces for Lease
Do Some Homework Before You Look at Space
Before looking at business space make a checklist that details and ranks your needs and priorities before you see any space. It is easy to get excited about how a space looks and overlook drawbacks. An experienced landlord or realtor will pick up on your enthusiasm for a particular space and may hard-sell you to make a quick decision, or be less flexible in negotiating lease terms.
Having a checklist of questions to ask about the lease is also important because commercial leases can be very complicated. A checklist of leasing questions will help you remember what to ask so that you will have enough information about the terms to research more about the type of lease being offered to you.
Checklist for Leasing Commercial Office, Retail, and Industrial Properties: When it comes to selecting a location for your business you need to think things through. Make a checklist before looking at commercial spaces of all the things that your business needs to succeed and take it with you.
If you have not already written a technical feasibility study, consider doing so. A technical feasibility study can help you think about, plan, and address all the needs of your business that need to be considered when leasing commercial business space.
- Glossary of Leasing Terms and Definitions: Before you start tackling commercial leases, take time to become familiar with basic leasing terminology. For example, it is important to know the difference between "usable square footage" and "rentable square footage." In most commercial leases, you pay for more square footage than you actually occupy.
- How to Write a Technical Feasibility Study: Writing a technical feasibility study can help you thoroughly consider and plan for all you present and future business needs when it comes to the space you need.
Types of Commercial Leases and Common Leasing Terms
- Types of Commercial Leases: Compare the types of commercial leases commonly used in commercial real estate in an easy-to-read chart.
- The two most common ways to lease office and other commercial spaces include:
- Lease: In a standard tenant-landlord lease you are the main business (or individual) named on a lease with the landlord.
Sublease: A sublease is when an individual or other business already has a lease with a landlord, but subleases (rents out) a portion of the space their space to you.
Sublessors cannot transfer rights to sublessees that are not in the original lease or if the original lease prohibits subleases.
Pros and Cons of Subleasing: Commercial subleases offer pros and cons to business owners. Before you sign a sublease, be sure to weigh the advantages and disadvantages of subleasing commercial space.