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10 Must-Know Tips for Leasing Commercial Property
1. Determine Your Space Needs
- Know your required square footage, layout (open vs. private offices), location needs, and parking.
- Consider future growth and whether you’ll need expansion options.
2. Set a Realistic Budget
- Account for base rent, Common Area Maintenance (CAM) charges, utilities, insurance, taxes, and build-out costs.
- Budget for unexpected costs and rent increases.
3. Understand Lease Types
- Learn the differences: Gross, Modified Gross, and Triple Net (NNN) leases.
- Each affects how expenses like taxes and maintenance are divided.
4. Evaluate Zoning and Use
- Make sure the space is zoned for your intended business use.
- Check for restrictions (e.g., signage, hours of operation, noise limits).
5. Review the Lease Term and Renewal Options
- Short-term leases offer flexibility; long-term leases may provide stability and better rates.
- Negotiate renewal options, expansion rights, and early termination clauses.
6. Negotiate Tenant Improvements (TI)
- Clarify who pays for build-outs and what improvements the landlord will make.
- Get TI allowances in writing and determine deadlines.
7. Inspect the Property Thoroughly
- Hire professionals to inspect HVAC, plumbing, electrical systems, and structural integrity.
- Document the property’s condition before moving in.
8. Understand Your Maintenance and Repair Responsibilities
- Know what you’re responsible for: interior, HVAC, roof, plumbing, etc.
- Triple Net leases often shift major maintenance costs to tenants.
9. Get Legal and Financial Review
- Have an attorney review the lease for hidden risks.
- Ask your accountant to analyze the deal’s financial impact.
10. Confirm Insurance Requirements
- Understand what coverage is required (e.g., general liability, property, business interruption).
- Ensure compliance with lease insurance provisions.
4 min read
-
10 Must-Know Tips for Leasing Commercial Property
1. Determine Your Space Needs
- Know your required square footage, layout (open vs. private offices), location needs, and parking.
- Consider future growth and whether you’ll need expansion options.
2. Set a Realistic Budget
- Account for base rent, Common Area Maintenance (CAM) charges, utilities, insurance, taxes, and build-out costs.
- Budget for unexpected costs and rent increases.
3. Understand Lease Types
- Learn the differences: Gross, Modified Gross, and Triple Net (NNN) leases.
- Each affects how expenses like taxes and maintenance are divided.
4. Evaluate Zoning and Use
- Make sure the space is zoned for your intended business use.
- Check for restrictions (e.g., signage, hours of operation, noise limits).
5. Review the Lease Term and Renewal Options
- Short-term leases offer flexibility; long-term leases may provide stability and better rates.
- Negotiate renewal options, expansion rights, and early termination clauses.
6. Negotiate Tenant Improvements (TI)
- Clarify who pays for build-outs and what improvements the landlord will make.
- Get TI allowances in writing and determine deadlines.
7. Inspect the Property Thoroughly
- Hire professionals to inspect HVAC, plumbing, electrical systems, and structural integrity.
- Document the property’s condition before moving in.
8. Understand Your Maintenance and Repair Responsibilities
- Know what you’re responsible for: interior, HVAC, roof, plumbing, etc.
- Triple Net leases often shift major maintenance costs to tenants.
9. Get Legal and Financial Review
- Have an attorney review the lease for hidden risks.
- Ask your accountant to analyze the deal’s financial impact.
10. Confirm Insurance Requirements
- Understand what coverage is required (e.g., general liability, property, business interruption).
- Ensure compliance with lease insurance provisions.
4 min read
-
10 Must-Know Tips for Leasing Commercial Property
1. Determine Your Space Needs
- Know your required square footage, layout (open vs. private offices), location needs, and parking.
- Consider future growth and whether you’ll need expansion options.
2. Set a Realistic Budget
- Account for base rent, Common Area Maintenance (CAM) charges, utilities, insurance, taxes, and build-out costs.
- Budget for unexpected costs and rent increases.
3. Understand Lease Types
- Learn the differences: Gross, Modified Gross, and Triple Net (NNN) leases.
- Each affects how expenses like taxes and maintenance are divided.
4. Evaluate Zoning and Use
- Make sure the space is zoned for your intended business use.
- Check for restrictions (e.g., signage, hours of operation, noise limits).
5. Review the Lease Term and Renewal Options
- Short-term leases offer flexibility; long-term leases may provide stability and better rates.
- Negotiate renewal options, expansion rights, and early termination clauses.
6. Negotiate Tenant Improvements (TI)
- Clarify who pays for build-outs and what improvements the landlord will make.
- Get TI allowances in writing and determine deadlines.
7. Inspect the Property Thoroughly
- Hire professionals to inspect HVAC, plumbing, electrical systems, and structural integrity.
- Document the property’s condition before moving in.
8. Understand Your Maintenance and Repair Responsibilities
- Know what you’re responsible for: interior, HVAC, roof, plumbing, etc.
- Triple Net leases often shift major maintenance costs to tenants.
9. Get Legal and Financial Review
- Have an attorney review the lease for hidden risks.
- Ask your accountant to analyze the deal’s financial impact.
10. Confirm Insurance Requirements
- Understand what coverage is required (e.g., general liability, property, business interruption).
- Ensure compliance with lease insurance provisions.
4 min read
-
10 Must-Know Tips for Leasing Commercial Property
1. Determine Your Space Needs
- Know your required square footage, layout (open vs. private offices), location needs, and parking.
- Consider future growth and whether you’ll need expansion options.
2. Set a Realistic Budget
- Account for base rent, Common Area Maintenance (CAM) charges, utilities, insurance, taxes, and build-out costs.
- Budget for unexpected costs and rent increases.
3. Understand Lease Types
- Learn the differences: Gross, Modified Gross, and Triple Net (NNN) leases.
- Each affects how expenses like taxes and maintenance are divided.
4. Evaluate Zoning and Use
- Make sure the space is zoned for your intended business use.
- Check for restrictions (e.g., signage, hours of operation, noise limits).
5. Review the Lease Term and Renewal Options
- Short-term leases offer flexibility; long-term leases may provide stability and better rates.
- Negotiate renewal options, expansion rights, and early termination clauses.
6. Negotiate Tenant Improvements (TI)
- Clarify who pays for build-outs and what improvements the landlord will make.
- Get TI allowances in writing and determine deadlines.
7. Inspect the Property Thoroughly
- Hire professionals to inspect HVAC, plumbing, electrical systems, and structural integrity.
- Document the property’s condition before moving in.
8. Understand Your Maintenance and Repair Responsibilities
- Know what you’re responsible for: interior, HVAC, roof, plumbing, etc.
- Triple Net leases often shift major maintenance costs to tenants.
9. Get Legal and Financial Review
- Have an attorney review the lease for hidden risks.
- Ask your accountant to analyze the deal’s financial impact.
10. Confirm Insurance Requirements
- Understand what coverage is required (e.g., general liability, property, business interruption).
- Ensure compliance with lease insurance provisions.
4 min read
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