When a business owner signs their first commercial lease, they are taking a big step on their entrepreneurial journey. Commercial leases are similar to residential ones, but they are usually more complex with different variables. Getting the lease right the first time can save you and your fledgling business a lot of headaches down the road. Here are some tips to help you when negotiating your first commercial lease.
Understanding Your Financial Commitment
Business owners will want to have a big picture of the view of their company’s finances before undertaking the leasing process. They will need to understand the company’s current situation, future revenue projections, and their ability to assume risk. This will help in choosing a lease that they will be able to afford.
Know the Terminology
Learning the language of real estate can help you secure the best possible lease for your business. For example, knowing the difference between rentable and usable space can be helpful when reading through the fine print of a lease agreement. Also, you should be aware of the various taxes, utilities, insurance, and building maintenance costs which are incorporated in the lease agreement. This will also better help you choose a lease which your business can afford.
Think Big Picture
Even if you are not planning to stay long-term in the space you’re leasing, it is still better to think of the big picture. The image of your company can be affected by the retail or office building your company inhabits. Therefore, consider the impact a particular building design or neighborhood/location can have on your business.
Don’t Go It Alone!
You might be the type of entrepreneur who takes a DIY approach to running your business, but choosing a commercial lease is not the best time to go alone. You might miss important terms and nuances in documents which a third party may be able to help address and explain to you. It is also very easy for an entrepreneur to fall in love with the way a space looks, which may obscure potential problems with the terms and conditions of the lease. Working with an experienced real estate broker or a lawyer, while more costly upfront, can help you avoid easy mistakes.
Your First Commercial Lease with Clagett Enterprises!
At Clagett Enterprises, we have extensive experience serving the greater Frederick area and Western Maryland, since 1987. Our team is a full-service real estate company that’s ready to help you with your real estate and residential sales needs. Speak with a Clagett professional at 301-665-6009, or request a proposal here. You can also follow us on Facebook, Twitter, Pinterest, and Google+.