Negotiating the Best Commercial Lease
It’s important that your office space is big enough for your employees and strategically located to benefit your business. If you’re relocating your business, you need to find an office space for lease that is the most beneficial to you and your company. After you’ve found the perfect commercial property for sale, it’s time to negotiate the terms of the lease. This article states 3 of the principal things to negotiate before signing a new lease.
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Length of the Lease
You and your landlord need to come to an agreement over how long the lease will be. Most small businesses prefer to rent for one or two years with the possibility of renewing. The reason that this is a recommended amount of time for small business owners is because it gives them the chance to change locations if the location doesn’t end up fitting what they need. Businesses such as restaurants, though, may want a longer lease because keeping the same location for their customers is important. Depending on the needs of your business, the length of the lease you want may vary.
You can better understand how much to pay for the commercial property for sale by comparing it to other similar properties in the same area. After you have a better understanding of the going rate, negotiate with the landlord to find a fair price for the both of you. You and your landlord should also specify any possible rent increases in upcoming years. This is because it’s not uncommon for landlords to want to increase the rent for each additional year the space is occupied, so if you settle it now there won’t be any surprises later.
“Gross leases” are when all of the costs are included in the price and “net leases” are when there are additional costs to your rent. Most commercial leases are net leases, so it’s important to negotiate the terms. You can even try to negotiate a higher rent in exchange for the landlord taking care of any extra costs, such as maintenance.
While you’re looking for a commercial property for sale, don’t forget to negotiate the terms of your lease. If you don’t feel confident in your negotiation skills, there are realtors that can help you find the best possible office space for lease at the best price.