Commercial property is extremely important to expand an existing business or start a new venture. There are many things to look for when signing a lease agreement for commercial property. The real estate agent and the tenant should streamline many issues before the lease agreement is finalized. This sort of awareness would help to avoid having unnecessary legal implications in the future. Rushing into things could end up with you having to regret your haste at some future date. This article is extremely important for people who are planning to lease a commercial property for whatever purpose.
Window Of A Building
The rental cost is the first thing to consider before deciding to rent out a commercial property. The real estate agent should give you a clear idea about the rental cost in the particular area where you plan to be based. Premises that are in close proximity to public transport and having high foot traffic would usually be more expensive in this regard.
Once you are clear about the rental issue, you should find out details of other expenses that are not part of the rent of the premises. Common maintenance areas such as entrance-ways and courtyards could be included as hidden fees in the contract. Get clear on the areas of utility bill payments, insurance, property taxes and garbage collection issues before signing the contract. Most of the time, utility bills are paid by the tenant, but check whether the meters for electricity and water are separate for your premises. If not, how will it be divided with the other tenants of the building? Take water as an example.
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If the building has multiple tenants then the bills might be split equally or split based upon the leased area as a percentage of the whole. However, one tenant may use a significant amount of extra water for their production process. The other tenants may end-up subsidizing that one company so be sure to check the small print. All these matters should be sorted out before finalizing the lease agreement. You must do this before your accept the lease as it can be very expensive to get out of a commercial lease.
If your business is dealing with walk-in customers, be sure to check for adequate parking facilities. If there isn’t enough parking in the premises, how would you find the space? What would be the charges for extra parking spaces? Your real estate agent should be able to answer these questions and negotiate with the landlord before your sign the lease agreement. Remember to check for all this before you sign the agreement because once you sign the agreement, you have no say on any of these matters.
All commercial properties have toilets and many have air conditioning and security facilities. Check if these facilities are shared with other tenants or dedicated to you. Telecommunication facilities are extremely important components of a successful business. Hence check whether the building has the latest optic fibre cables installed for high speed Internet access. Don’t forget to get clear on this as it can affect your business in a big way since all modern businesses are mostly Internet-based.
If the telecoms lines are not sufficient for your needs, what are your options for installing additional lines and trunking?
You also must look at future growth opportunities when looking for a commercial property. Does the building have sufficient space for your immediate future growth? Also the longer the lease, the favorable the conditions would be to the tenant. Keep this in mind when you are searching for commercial property for lease.
You should never sign the lease agreement without consulting your lawyer. Select a law firm, who specializes in commercial real estate leasing in order to handle your case. The solicitor will interpret all the clauses in the lease agreement and explain your legal rights plus more importantly, your commitments. They will do this before allowing you to sign it. Consulting a contract lawyer is extremely important to avoid any mishaps while negotiating and signing the lease agreement on the commercial property. This will help you to have a peace of mind while getting the best premises to start your new business venture.
The above tips should help when you decide to lease a commercial property to start your new business or expand the existing business.
For businesses around Albany McVeagh Fleming are contract lawyers on the North Shore. You can get more detail on their website www.mcveaghfleming.co.nz.
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