Signing a commercial lease is one of the most important decisions business owners will make in their entrepreneurial journey, so they should put a considerable amount of thought and research into prospective commercial properties. As one of the top commercial real estate agencies in Arizona, Plaza Companies has highlighted a few things to consider. Read below to make sure you understand the basic ins and outs of commercial leasing.
Get to Know Property Owner
One of the most important aspects of your research is learning about the property owner. According to Business News Daily, there are some states who will evict businesses or tenants in the event of foreclosure of a landlord’s property. For this reason, it’s important to conduct research on the property owner. Business owners may ask the landlord about their financial situation, their payment rate, and questions that provide a better idea of how they operate. Investors can also conduct research via public records to find more information about their prospective landlords.
Go At Your Own Pace
Searching for the perfect place for business operations can be a stressful and time-consuming process. Choosing a property has a dramatic impact on the potential success of a business, so finding one that meets your needs is vital. Business owners must take their time and resist the urge to settle for anything less than what is needed. In addition, once you do find the right property, take a day to closely examine the agreement before signing a commercial lease.
Understanding Elements of a Commercial Lease
Some people get hung up on the legal language and responsibilities in a commercial lease. Business owners must ensure they understand their responsibilities, the cost of the lease, and the amount of time one is legally allowed to occupy the property. Additionally, investors should take note of other aspects of the commercial lease such as:
- Lease extensions or “holdovers”
- Security deposits
- Tenant rights and responsibilities
By understanding the details of a commercial lease, business owners can feel confident in making their decision.
Hire a Real Estate Broker to Negotiate Your Lease
Once business owners become familiar with different aspects of the lease, they can negotiate for better terms of the lease. Hiring a seasoned real estate broker will provide prospective tenants strong advocacy in negotiating the details of a commercial lease. They’ll be able to advise not only on potential locations but also details pertaining to the lease’s insurance clauses, indemnification clauses, operating expenses, and maintenance provisions.
One item business owners and real estate brokers can negotiate for is a flexible lease, including an early termination and sublet clause to the commercial lease and allowing the company to leave the property earlier than the lease’s end date. This helps protect businesses from unforeseen events and allows them to readjust to their needs.
Plaza Companies’ Brokerage Services Team Members Are Commercial Real Estate Professionals
Plaza Companies has enjoyed a reputation for providing first-class commercial real estate brokerage services to owners and investors since 1982. From helping you find the right commercial lease for your business to managing properties itself, we strive for excellence in our services. Our brokerage services team remains in constant communication with tenants and landlords to ensure continuous satisfaction. Contact us today to learn how we can help your business today.