If you've just started a business, your next step is securing a commercial lease. After all, you need a place to conduct business. These commercial leasing negotiations can go smoothly if you keep these tips in mind.
Decide on a Commercial Lease Type
There are many different commercial lease types you can choose today. Some of the most popular include full service lease, net lease, and modified gross lease. In a full service lease, the rent is all-inclusive and things like taxes and insurance are covered by the landlord.
Net leases work by charging a lower monthly rate while you take care of the typical costs, like property taxes. Modified gross leases charge rent in one lump sum, and you and the landlord decide what extra costs are taken care of in this lump sum.
Look at Comparable Rents
When you go to negotiate a commercial lease, you want to be as knowledgeable as possible so that you get a deal that works best for your business. This involves looking at comparable leasing rates in the area you're interested in.
Armed with these figures, you can determine if you're getting a good deal or not. These figures also strengthen your negotiating power. Finally, knowing what rent is like in a particular commercial sector saves you from being surprised. You can walk into these negotiations already familiar with what you'll pay, making this process go a lot more smoothly.
Don't Forget About Favorable Clauses
A lot of business owners make the mistake of thinking that a commercial lease offer is set in stone. It's actually not and there are plenty of adjustments you can ask for that work out in your favor.
For example, you could ask the leasing officer if they would grant you the option of subleasing. So if something happens with your business, such as bankruptcy or moving to another location, you can get someone else to take over the lease until its period ends.
Another favorable condition you should ask for is not renting to the same type of business as yours in the same vicinity. This way, you don't have to worry as much about nearby competition affecting your sales.
Starting your own business can be a lucrative, exciting process, but you need the right commercial space in order to succeed. You can choose a great commercial lease by researching your options and negotiating a lease that works for your particular situation.