6 Commercial Leasing Tips that will Save Time (and Headaches)
If your company needs a new location and you’ve been tasked with leading the charge, you may be feeling a bit overwhelmed – and that’s perfectly understandable! The process is complicated, and even figuring out where to start can be incredibly confusing. That’s why we’ve compiled these commercial leasing tips. Because, whether our team is guiding you through the process or not, we want you to thrive.
Tip #1: Start Now
Unlike residential leasing where things often happen quick, the commercial leasing process is time consuming. Not only does it take significant effort to find the ideal location, but it’s also common to have several rounds of negotiation when working through the details and terms of the lease.
Start as early as possible to reduce the risk of settling on a sub-par space or unfavorable contract terms. If you are dealing with a tight timeline, it becomes even more important to work with a commercial leasing expert who can help you navigate the process efficiently and avoid the dangers you may not recognize on your own.
Tip #2: Know Your Needs
There’s no one-size-fits-all solution for commercial leasing. Every business has very different needs, and those needs evolve over time. So, assess your business’s needs right now and in the foreseeable future. Remember, you can’t find the perfect spot if you don’t really understand what you need.
Involve your executive and/or management team in this assessment because they’ll each have different (and valuable) insights into what their department would need to maximize productivity. Encourage each of them to create a wish list and a list of their biggest concerns, so you get a full view of the goals for the new location.
Tip #3: Prioritize Those Needs
Of course, the goal is to find a location that satisfies every need on your wish list, but realistically, there will be some compromises. Knowing what’s a “deal breaker” and where you have some wiggle room will help to simplify the research process because you’ll be better equipped to rule out properties based on listing details. That’s especially true if you’re working with a professional who knows what to look for and what to avoid.
Prioritize items that are integral to the company’s operations and for connecting with customers. For example, if you are selecting a new restaurant location, you need to prioritize visibility and accessibility for guests over a comfortable breakroom for employees.
Tip #4: Do Your Research
Of course, you’ll be doing research on the locations that are available, but you’ll also want to understand the relevant area and market trends. At this point, it’s important to note that working with an expert broker will significantly reduce the amount of time and resources you’ll put into this process. After all, this is one of the commercial real estate tips that’s instructing you to do what we do for a living.
If you’re committed to a DIY approach, consider questions like (but certainly not limited to):
- Is the neighborhood “up and coming” or on the decline?
- What does the local competition mean for your brand?
- Will the prospective site improve access to your target audience?
- Are the proposed rental rates competitive?
- What is the landlord and/or property manager’s reputation?
Tip #5: Understand the Lease Contract
Commercial leases are complex, legally binding contracts, and there are countless fine details that could turn into costly headaches if you’re not strategic in the negotiation process.
Of all the commercial leasing tips we can think of, this is likely the most important one: have an expert represent you in your tenant negotiations.
From understanding the realities of Personal Guarantees to navigating your Tenant Improvement Allowance, there are so many small details that can have major consequences down the road. Partnering with a broker who specializes in tenant representation ensures you’re getting the absolute best deal possible – and that you won’t have any unexpected (and expensive) surprises later on.
We Can Help You Turn These Commercial Leasing Tips into a Customized Strategy for Success.
Your Southern California real estate specialists. Allwest Properties, Inc. offers a full range of real estate services for commercial, industrial, and residential properties throughout Los Angeles, Orange, San Diego, Riverside, and San Bernardino counties.
With over 25 years of industry experience, we offer a comprehensive suite of solutions, including sales, leasing, tenant representation, landlord representation, investments, site selection, and consulting services. Our goal is to exceed our clients’ expectations with each and every transaction.
Contact us today by calling 949-287-3291 or emailing firstname.lastname@example.org.