Commercial property leasing can be a big way to start your own business, but doing your homework first is essential. There are many things to check before you sign that lease agreement!
In this blog post, we’ll go over the most important ones. Keep reading for tips on what to seek before leasing a commercial property with the help of conveyancing lawyers.
Benefits of Leasing a Commercial Property
While there are benefits to owning and leasing commercial property, there are some advantages to leasing that businesses you could receive.
- First, leasing provides more flexibility than owning, allowing businesses to move to a new location if their needs change.
- Leasing can be more cost-effective than buying, especially for businesses that are just starting or uncertain about their long-term needs.
- Finally, leasing allows businesses to try out a property before committing to purchase it. For companies considering their options for commercial space, leasing is worth considering.
Although there are considerable financial advantages to leasing, you must still know determine which properties are worth your money. Here are some things you need to consider before leasing a commercial property:
Rental Amount
Businesses need to be aware of more than just the monthly rental amount in leasing commercial property. Besides the base rent, tenants will be responsible for paying for utilities, janitorial services, and other expenses. As a result, it’s essential to consider the total cost of ownership before signing a lease.
Additionally, businesses should consider the length of the lease. A longer lease will typically result in a lower monthly payment, but it may limit flexibility if the company needs to expand or downsize.
Ultimately, businesses must balance short-term costs and long-term flexibility when choosing a commercial lease.
Location of the Commercial Property
The location of your commercial property can significantly impact your business. For example, if you are leasing a retail space, you will want to be sure that the area is located in a busy spot with high foot traffic.
If you are leasing an office space, you will want to be sure that the property is on a professional site close to other businesses and amenities. The location of your commercial property can also impact your bottom line.
In general, properties in busy or desirable areas will cost more to lease than those in less desirable areas. However, the additional cost may be worth it if your business is more successful. There are many factors to consider when choosing the location of your commercial property. Before deciding, consider the impact that area will have on your business.
Size and Type of Property
Before leasing commercial property, it is essential to consider the size and type of the property. The size of the property will guide how much space you have to work with and how many employees you can have onsite. The property type will dictate what kinds of businesses can be conducted on the premises.
For example, a retail store will require a different kind of property than an office building. It is essential to consult with a real estate agent to find the right type of property for your business. Otherwise, you may wind up paying for space that you cannot use, or that is unsuitable for your business.
Type of Commercial Lease
Before leasing commercial property, it is vital to consider the type of commercial lease that is right for your business. There are three fundamental types of commercial leases: gross leases, net leases, and percentage leases.
- Gross leases are the simplest type of lease, and they usually include utilities and other operating expenses in the rent.
- Net leases compel the tenant to pay a base rent and a portion of the property’s taxes, insurance, and maintenance costs.
- Percentage leases are typically used for retail businesses and are calculated as a percentage of the tenant’s monthly sales.
Understanding the different commercial leases allows you to choose the best option for your business.
Conclusion
For businesses, whether to buy or lease a commercial property is important. There are various aspects to consider, including the property’s size and location, the business’s financial resources, and the time the firm intends to stay in the space.
If you are in the market for new office space, it is essential to do your research first. Consult with qualified Australian real estates conveyancing lawyers like Bickell and Mackenzie. You can avoid any costly mistakes down the road by taking the time to get things done right through some assistance from conveyancing lawyers. Get in touch with Bickell and Mackenzie’s conveyancing lawyers today for more information.
