Leasing a commercial real estate may give you the opportunity to start a new business and earn money. However a small business owner or an entrepreneur may get rather confused about how to lease a commercial real estate. In this article we’ll give you a few tips on what you should take into consideration when negotiating for a lease deal as a tenant.
Create a Team of Professionals
Gather a team of professionals consisting of a contractor, an estate broker, a lawyer, an accountant, a PR manager and the rest. These people will be able to help you find the most suitable building for you to start your business in. Before you lease a commercial real estate, evaluate the area; see what the advantages and disadvantages of the place are from the viewpoint of social marketing and from the viewpoint of you income.
Read the Lease Contract Carefully
As soon as you have chosen the best suitable commercial real estate for your business, ask to see the pro forma copy of the lease deal. Read it carefully to be able to alter certain things in it. You are not going to be able to negotiate the lease terms unless you have read the whole document carefully and thoroughly.
Negotiate Lease Terms
Do not be afraid to negotiate lease terms with the landlord. After reading the lease document, make an excel sheet of the things you are for and against. Then introduce that list to the landlord. You will be surprised how eager he/she will be to negotiate the details.
What is CAM?
Take care to determine how much money you will be paying for the so called CAM or Common Area Maintenance. The CAM is the money charged for maintaining areas used by all the tenants of the real estate. These areas are considered to be walkways, elevators, stairways and so on. To be able to calculate your CAM you just need to know the total area that may be occupied by the tenants. As soon as you know the square footage of the whole area, you should divide that amount into the square footage of the space you will be leasing. You then turn the remaining amount into percents and see how much space is under your maintenance.
Changes and Repairs
Another important thing you should not forget about when you lease a commercial real estate is altering the space so that it meets your needs. This is a question that should be negotiated with the landlord in detail. Usually, it is the tenant’s responsibility to make the necessary changes in the building; however he/she must get a permission to do so.
Inquire about Assignment
Imagine that your business thrives and another entrepreneur wants to purchase it. To avoid possible inconveniences, you had better negotiate this last thing with your landlord before such a situation occurs. Thus, you should inquire from the landlord whether you can assign your lease to another businessman, if needed.
These were some basic things you should know when you lease a commercial real estate. Note that commercial real estate lease contracts may differ from each other considerably. Thus, it is better you hire a skilled attorney to help you sign the best lease deal.