Before you start looking for an excellent commercial property rental to rent for your law firm,you will need to get informed about the commercial office leasing procedure. Being prepared will help prevent you from making foolish decisions and costly mistakes thatyou will probably regret later on. Below are some insider suggestions to help make an informed choice when letting a commercial space your company
Start the process of hunting for commercial space at least 6-12 months before your current lease terminates or until your perfect move-in-date. Finding the perfect space and negotiating the deal will require 1-2 months depending on the size area and current market conditions. Typically the spaces you like will require some type of changes which the time needed will depend on the scope of work.
Thoroughly examine your company’s current and future needs. Consult with the different department heads for input as well as some key employees.
Get acquainted with the commercial real estate terms and meanings. Various landlords say and quote things otherwise. If you’re unsure about what they mean do not be afraid to ask them to get more info.
If you’re not knowledgeable about the commercial real estate leasing process or the current market conditions then consider engaging the assistance of a tenant rep. Their services do not cost you anything because building owners compensate all the rental fees. The landlord representative will have an experienced listing agent advising them so it would be a good idea for you to have one also.
Personally tour all the properties that meet your requirements so thatyou can make a short list. Bear in mind that the layouts can be reconfigured so don’t get stuck on that. Ask the landlord reps a great deal of questions about the ownership,property amenities,required lease duration,how much the landlord is prepared to give in tenant improvement allowances,etc..
Don’t settle for the first commercial space you think is suitable for your requirements: continue looking until you have at least 2 to three other choices. These extra options will work to your advantage because you will know what to expect throughout the lease negotiations and you will gain more leverage with multiple building owners competing for your tenancy. They also give you something to fall back to if the negotiations to your first choice fall through.
Send out proposals to your top three to five choices. These aren’t legally binding. You don’t ever need to have a landlord representative’s verbal word. Everything needs to be in writing.
To help you decide what property is most suitable for your company,prepare a spreadsheet to do an apples to apples comparison of every property. Some of the things you should put into consideration include the dimensions of the space,the inquiring base rental rates,the required lease duration,and the incremental costs (taxes,insurance,maintenance,etc). It is also possible to take note about the advantages and disadvantages of each property. If you’re budget conscious then you can quickly narrow down the list by calculating the monthly base rents for each property then eliminating those that are way above your budget. The monthly base rent is calculated by multiplying the industrial space square feet from the asking base rate and any operating expenditures then dividing by 12.
If some of the commercial spaces require tenant improvements then it’s important that you determine what improvements you want on each and get preliminary bids. This way if the landlord is offering a tenant improvement allowance you will know how much out of pocket you will have to pay above and beyond what the landlord is prepared to give.
Carefully analyze and compare the terms of each proposal. Consider whether it makes sense to return to every landlord to negotiate additional concessions. Make certain you fully understand the total expenses you’re expected to cover. Don’t get emotionally attached to a specific property until the negotiations are over. Emotional attachment might result in you signing a contract thatyour business cannot live up to.
After negotiations are finalized and you’ve made your selection now it’s time to have the landlord provide you the first draft of the commercial lease contract.
Now it’s time to reassess the commercial lease contract. It would be wise for you to hire an attorney to review the lease. If you have a tenant representative then they could review the lease with you also. Industrial lease language could be negotiated. If you do not like certain lease items or want to propose new language today is the time to do so.
Once the end of lease contract negotiations has finished the landlord will give you a draft of the lease to review.
There are several more things to think about when renting commercial space however these ideas will help get you going. If you’re a new company renting commercial space for the first time or an current company who has only leased 1 or 2 spaces then consider getting help from a tenant representative. Their services do not cost you anything and you will save a great deal of money and time. For more warehouse space rental tips click here.