When you’re setting out to find a new commercial property for your business, whether this is your first space you’re leasing for the first time or your a seasoned business professional that wants to find a new space, the process can be quite stressful! LCI Realty has gathered some of our most important commercial tenant tips that we give to clients and strangers alike. We want you to be prepared to find the perfect property so these tenant tips can get you started and then when you’re ready, you can give our team a call and we can help you get into the space that you love for your business.
- Get Everything In Writing
This is the golden rule of the commercial real estate industry, or any industry that involves contractual obligations which is why it’s the first of our commercial tenant tips. When discussing things with your landlord or potential landlord, don’t assume that a spoken deal and a handshake are ample enough protection. Some people say “well, I don’t want to be bothersome,” but it’s better to insist now than wait until you are in a bad situation later.
- Understand The Lease Type
In terms of commercial real estate tenant tips, this one if going to be on every list and there is a very good reason for that. There are several types of commercial leases and each of them have different clauses and levels of responsibility for tenants. Generally, most leases will be either gross leases or net leases, but there are different variations of each lease, so make sure you speak with a professional and understand the lease before you sign.
- See The Property More Than Once
Sometimes we can fall in love with a space and the potential we see, not noticing the flaws or potential drawbacks. Maybe the space is great and perfect for your clients, but it’s not in a part of town that people will want to come to. Maybe the hall spacing is smaller than it seems to you on your first walk through and you will need to figure out how to get the necessary equipment in the building. Perhaps your neighboring businesses are unsavory. Whatever the case, a second walkthrough, preferably with your team present, should reveal any flaws you missed.
- How Long Is The Lease? Are There Any Anchor Tenants?
One of those little tenant tips that brokers and lawyers know that many people don’t is to look at the lease length and the neighboring tenants. Are there any tenants that act as an anchor for the area or tenants that have been in the area for many years with stable foot traffic? Is the landlord looking to lock you into a long lease? That’s not always a bad thing, but you must consider that a long lease is good for the landlord, but bad for you if you wish to expand.
- Check Zoning Laws
If you fall in love with a space, it still might not be zoned for your purposes. Generally, if you’re working with a tenant representative, they will work this information out for you and it’s usually information that the landlord has available, but it’s never a bad choice to check zoning laws yourself and make sure the property you want to lease is even viable for your business.
- Create A Customer Profile
When searching for a space, keep your customers in mind. This is likely something you have done with your business plan, but you might not have considered where they live, what types of business they might frequent and what the general availability and cost is in the area your customers are likely to be. This is one of those tenant tips that can be simple or complex, so you should consider discussing this profile with a tenant representative when you call.
- Research The Landlord
If you’re going to be signing a contract with someone, make sure that you are completely aware of who they are and what their track record is. After all, they are doing research on you and determining your worth as a tenant. It’s a good idea for you to know what you might be getting yourself into. While the research is very important, it’s also important to take things with a grain of salt, especially if you do independent research on the internet. Some people are spiteful and only tell half the story. This also goes for landlords. Usually, your tenant representative will have the best picture of who your landlord is and how they will behave.
These are about the most basic tenant tips that you can take into account as you search for a new property, but now is the time to really go in depth and make sure that you get the best property for your team. You need more than a list of tenant tips. You need to speak to the team at LCI Realty. Contact our tenant representation team today by calling 480-565-8981.