What Should You Do Before Signing a Commercial Lease?
Signing a commercial lease is one of the most important processes every business owner must complete. I, G.S. Mann, have encountered a number of poor leases in our capacity as business contractors. If you’re searching for commercial rental property, we strongly advise you to surely do the following things to make it a great deal.
- HAVE PATIENCE; TAKE YOUR TIME:
Finding the perfect location for your company will consume time and be difficult. If you accept this right away, everything will work out. Making the appropriate location decision for your company may make or break it, so you need to be sure to take your time and do it well. So, avoid making decisions impulsively. Additionally, if you ever feel like signing a lease, resist the urge. Spend one additional day considering things and being sure.
- HIRE AN EXPERIENCED COMMERCIAL REALTOR:
Not only will having a commercial real estate expert help you choose a site, but it will also be crucial to have their advice when you negotiate the lease. If you don’t have experience on your side, this may be expensive and tiresome. For instant, are you an ‘A’ class tenant or ‘B’ class tenant? Are leasehold improvement incentives available to you? You can navigate the offer with the aid of your agent. Hence, also choose one of the best northeast Calgary commercial realtors like G.S. Mann.
- NEGOTIATE AS MUCH AS YOU CAN:
Never agree to the initial leasing conditions that a landlord offers. Try to get an agreement on a price or other terms, such as facility expenses. Most essential, be prepared to walk away from a house no matter how much you fall in love with it or how ideal it appears to be. You will be in a stronger position to negotiate if the landlord recognizes this from the start.
- BEFORE YOU SIGN ANYTHING, CONSULT WITH YOUR ATTORNEY:
The consequences of signing the incorrect commercial contract or renting the incorrect property from the incorrect landlord may be costly and extend well beyond the realm of real estate. Like any other legally enforceable contract, a property lease should always be reviewed and authorized by an attorney before you sign it. In contrast to possible landlords, your lawyer works for you and is compensated to ensure that your interests and those of your business are safeguarded.
- UNDERSTAND YOUR TERMINOLOGY
The recommended lease terms are 10, 5, and 10. In other words, you want to lease the property for a 20-year period, commencing with a 10-year fixed term and continuing with a second 10-year term or two 5-year options. In order to protect your company and maximize the cost of the leasehold improvements, this is crucial. For this you have to rely on northeast Calgary commercial realtors.
RECOGNIZE YOUR TERMS
Ten and ten, or ten and five, should be the lease terms. In other words, you want to lease the property for a total of 20 years, starting with a fixed-term lease of 10 years, followed by another 10 years or two 5-year options. This is crucial to protecting your company and making the most of the money spent on leasehold improvements.