Renting commercial space is a big step for any business owner. However, finding the perfect commercial lease is no simple task, and there are many different issues that can pop up during the process. Here are a few mistakes you?ll want to avoid making while entering into an office lease agreement.
Not Comparing Rent Prices
Just because it seems like a good deal, doesn?t mean it is. Before agreeing to sign off on any commercial leases, it?s best to compare the rent prices to other similar commercial real estate developments. Find out what the going rate is for the market before talking to the owner of the commercial real estate development, and see if what they offer you is close to these rates. If they aren?t, then you may need a little more negotiation.
Lack of Negotiation
While many tenants think that the landlord is the law, business owners may have more power than they think when leasing commercial property. Without tenants and commercial leases, a landlord would just have an empty building. When renting commercial real estate, tenants should know all of the options of the leasing contract. This includes the options to expand, sublease, or terminate the contract. If there are any terms that don?t fit your ideal conditions, talk with the landlord to try and work things out. It?ll make a big deal in the long run.
Not Thinking Ahead
Once commercial leases are signed the terms are binding for however long the lease is set to last. If a tenant signs a lease without thinking about how their business will change over that period of time, they may run into trouble. Say a business gets a 10-year loan, but immediately starts to grow when their business is set up. Later down the road, the business has outgrown their commercial space, but is unable to expand. When considering how much space you need, keep in mind the potential growth your company may do through, and make sure that that the space you choose is the right fit for now, and for the future.
