10 Things to Consider Before Leasing
If you are considering leasing space for your business, here are the Top 10 things to keep in mind.
1. Decide How Much Space you Need:
Decide on the maximum amount of space you will need for your business operation. Commercial agents may show you large spaces and suggest that you can find a use for the space. More space usually cost more money, so stick to your limits on this one. Click here for more information on how to determine the amount of office space you need.
2. Is the building in the right part of town?
It is smart to find an office location in a part of town that is convenient for your employees, clients, and suppliers. If businesses in your industry are located in a specific part of town, perhaps you should look for spaces in or near that part of town.
3. Can you build out the space?
Once you find a great building, you will have to make the office space your own. Make sure the property manager will allow you to build out the space as you want.
4. Does the building and space present the image that you are looking for?
If you are in an industry to caters to clients that expect lots of amenities, you will want to make sure the building has valet and a concierge at the front desk. If your company is focused on being “green”, you may want to locate yourself in a LEED certified building.
5. Who Pays for What?
Brokers and leasing companies are fond of throwing out terms like “triple net” and “gross” leases. Ask specifically what is included in the lease and what is not included. Some costs that may or may not be included in the lease are utilities, property taxes, and maintenance (snow removal, lawn mowing).
6. Is There Enough Parking?
Depending on your type of business, you may have many customers coming to your business. Is there parking for employees? Is there enough parking for customers? Is there enough handicapped parking?
7. What Restrictions are in the Lease?
Restrictions might include use of the space in the evening and on weekends, signage size and placement, and subletting (allowing someone to use part of your space).
8. Who are the Neighbors?
Check out the other tenants in the building or strip mall to make sure none are in competition with you or would be undesirable. Ask if you can have an exclusive on your type of business, to keep competitors out.
9. What Happens if You Break the Lease?
This is an important question. Find out the penalties for breaking the lease. You might want to look elsewhere if the penalties are too high.
10. Can you Expand?
Ask about the possibility of expanding or of getting first rights at adjacent space as it comes available. You want to stay flexible for future possibilities.
If you would like more information about this topic, or if you are interested in leasing commercial space, email a SwiftLease agent at [email protected]
Content is provided by SwiftLease leasing agents.