Finding a suitable commercial space can be overwhelming, especially for small business owners. This is because you are expected to research various things such as building ownership, zoning laws, and environmental and nuisance laws. Furthermore, you are supposed to have a budget for rent, insurance, utilities, and maintenance among other expenses. This looks tiring and a lot to handle, right? Well, the content below will simplify various steps of leasing a commercial space.
What is a Commercial Lease?
A commercial lease is a legally binding contract between a landlord and a business tenant. Typically, commercial leases last between three to five years. Unlike residential leases which prohibit you from conducting business, commercial leases allow you to do business in the commercial space. Also, you get to enjoy the flexibility of negotiating terms and conditions.
Characteristics of a Commercial Lease Agreement
For a commercial lease to be a legally binding contract, certain elements must be present. Firstly, it must contain rent details of the commercial space. The contract must also have information regarding duration, security deposit, and additional costs to the tenant. Some of the costs include property taxes, maintenance costs, and building insurance.
Aspects to Consider before Leasing a Commercial Space
Before signing a commercial lease agreement, you must research the location of the commercial space. Remember, the location can break or make your business. Look at the potential clientele, accessibility, and security of the property.
Subsequently, you have to do a background check on the landlord and business owner. Make sure you assess their financial situation to avoid eviction in case of default in mortgage payment by the building owner.
Other factors to consider are:
Zoning laws
Nuisance laws
Environment laws
Insurance
Parking
Modifications
Seek Expert Assistance
As a business owner, you may take months or years before finding the most appropriate commercial space. With so many industries out there, it’s impossible to create one loan that suits everyone. That’s why Commercial One Group offers a variety of financial products.