Numerous organisations & entrepreneurs are today opting to lease their business property instead of purchasing it for their own occupation. The trend is rising by the day as commercial enterprises turned out to be progressively reluctant to tie up capital and invest time in overseeing a physical premises.
Renting a property for commercial use implies venturing into a minefield of undue and sometimes, unexpected expenses and fees. The commercial real estate market is brimming with specialists with vast experience who tend to be assertive, particularly with rookies. To begin with, don’t leave your search for your next space for the last moment. The less time you have, the less leverage you’ll have during the negotiation phase.
However, before jumping to the topic of handling negotiations, let’s discuss fundamentals you need to take care of before renting a property for commercial use. The is a host of factors to consider including your budget, supplier’s location, clients and transport facilities. Besides that, your business requirements, clientele and the features you want (on-site employee parking) also play an important role.
The first and foremost thing is the rent. It is absolutely necessary to ensure that you are getting your money’s worth. For that, take into consideration the kind of space would you are leasing and whether it incorporates basic sections like foyers, washrooms, and lifts. Also, keep in mind the way in which the landowner measures the space as some tend to incorporate the thickness of the dividers. Additionally, remember that business rent agreements more often than not accommodate a yearly rate based rent increase.
It is advisable to set cost parameters right from the outset. Consult with the landowner for a cap on the percentage increase to maintain a strategic distance from inconvenient expenses later on that emerge due to an increase in the rent. Verify whether there is a use clause. A vast majority of rent agreements have a utilisation clause to determine the action the occupant can participate in on the premises.
The location is a standout amongst the most crucial variables when choosing new premises. You ought to examine the local real estate market trends, for example, accessibility of property, occupant demand and rental qualities.
In the event that you are seeking to open an eatery, bistro or shop, you need to choose a location where high footfall can be expected. If you are looking for delivery & courier services that provide home delivery of products such as an ipl machine for sale, you will require great transport service. What’s more, if you intend to open a salon offering treatments with IPL machine, you will require an area that is within easy reach of your existing clients and potential customers.
You ought to consider the number of workers on location, the procedures utilised and any apparatus required. Also, in the event that you foresee the business flourishing, you may require additional space to incorporate an increase in workforce and changing business requirements.
Last but not the least, it is prudent to ensure that any property you are thinking about leasing has the necessary planning sanctions for the business you intend to conduct there.