Whether you’re searching for new office space in a high-rise building or in a standalone detached setting, you want to find the very best solution for your company’s needs. There are many things to consider when you’re conducting a commercial real estate search or in preparations to sign a lease, but avoiding these all-too-common mistakes you can greatly improve your chances of getting the best space or building for your needs with the best deal.
1. Trying to Go It Alone
When you have a financial problem with taxes, you visit an accountant. For legal matters, you seek the advice of an attorney, and when you have a health problem, you schedule an appointment with a doctor. You know that you’re not an expert in finance, law or medicine and need help of professionals to guide you. The same holds true of commercial real estate. It takes years to become an expert in the field and to gain the knowledge and experience needed to truly understand the market. That’s why it’s important to get help from an established expert in commercial real estate like a tenant rep broker. A broker charges the landlord, not you, for their services, so you don’t have to pay a fee to get their help. Having one on your side will make it easier for you to find the right space for your needs and negotiate a fair deal.
2. Only Looking at the Property
As you consider which space to rent, you’re likely to think about the layout and amenities of the space first and foremost. While this will help you ensure that you get the right property for your business needs, it’s a mistake to ignore the surrounding area. Before you decide to sign a lease, do your homework and learn about the market. What’s the average cost of rent? What other businesses are nearby? How popular is the area? Are their plans for future development or changes to the neighborhood? The location of your space matters as much as that space’s individual features.
3. Thinking Only About the Future
Of course, you want to ensure that the space you choose will continue to meet your needs in the future, but you can’t afford to ignore your company’s present financial situation. Don’t make the mistake of assuming your current income will only increase in the future and allow you to afford the property. Base your decisions on affordability based on your current operating numbers to avoid ending up taking on a larger obligation than you can meet in the short term.
4. Ignoring the Fine Print
It’s never a good idea to sign a contract without reading it. Most people know that they should review their lease agreements before they sign them, but it’s amazing how many people will overlook items that are confusing or unfamiliar in the terms. Make sure that you seek clarification about parts of the lease that you don’t understand. Never sign until you know what every line of text in your lease says and what it really means for your business. A tenant rep broker can be a valuable resource when you’re examining the documents and can help you make sense of the terms.