Leasing a commercial property is no same as renting a residential property. Unlike the residential real estate market, the commercial one is not standardized. Hence, leasing a commercial property can be a tough job in Florida without the right professional guidance.
If you plan to learn from your mistakes while leasing commercial property, be prepared, they can be rather costly. So why not take the necessary steps that can prevent confusion and mistakes while leasing a commercial property in Florida! Check out these tips below.
When leasing a commercial property in Florida, one of the first things you need to do is, study and explore the location from where you’re planning to operate your business. Yes, researching the location, the neighborhood, the customer behavior, and the submarket there is significant to succeed in business.
For example, if your business consists of a factory or manufacturing unit, you must consider the transportation facilities and connectivity of that area with your suppliers. Similarly, if your business depends on customer walk-ins, then security and parking facilities in that area require special consideration.
Do you know when read carelessly or not understood properly, signing a commercial property leasing agreement can go more in favor of the landlord than you? Yes, most of the time, people end up signing an agreement without going through it properly. and this hurried decision makes them regret later.
So, make it a point to understand the agreement and go through clause by clause as many of it can be negotiated. You need to be careful about whether your rights and obligations as a tenant are mentioned in the agreement clearly or not.
Plus, always have an exit plan ready. Before signing the lease agreement, make sure the penalty amount is clearly mentioned in the agreement in case you decide to leave the property before tenure expires.
When it comes to leasing a commercial property the extent to which negotiating can go is really surprising. Therefore, do not hesitate to negotiate not only the rent amount but the leasing clauses that you’re not comfortable with.
One of the tricks for trying to strike a good deal is never accepting the first rental price offered by the landlord. Even if you’re in love with the property you must negotiate and be willing to walk away if the landlord doesn’t agree to negotiate the price or the rental terms.
If you’re not a pro in negotiation, hiring a commercial real estate agent is necessary as otherwise, you might end up getting duped.
Leasing a commercial property comes with various other expenses. Before signing the agreement, you must make sure that the lease agreement clearly mentions which additional expense is for whom to bear. Usually, in commercial leases, the repairs, upkeep, and maintenance charges are borne by the renter. Still, the mention of repair limitations in the agreement helps avoid confusion later.
Conditions related to expanding the commercial space in the future, if need be, must be there in the lease agreement. After all, you never know when your business might need certain alterations or expanding the property. Hence, having in writing the cost and extent of additions that can be made when required can prove to be helpful later.
Be aware that the rules that go for renting a residential property don’t go for leasing a commercial one. In both legal and practical terms, commercial leasing differs from residential leasing.
For example, in a residential property, the rent cost covers the property rent as well as other services such as utilities. However, leasing a commercial property includes one price for the actual property rental value and additional charges for different services such as security, landscaping, housekeeping, garbage cleaning, etc.
Some of the major differences between leasing commercial and residential properties are:
When planning to lease a commercial property, you have to be open-minded and be ready to check out several properties. Until you do your homework and go through the local commercial real estate market to have an idea about the present equitable commercial property rent price, you won’t be able to strike the right deal. After all, the property you feel like worth the rent, may not be actually worth it; and you might end up paying more rent than the commercial property deserves.
Having the guidance and advice of a professional commercial real estate agent is crucial not only to find the best locations in Florida but also to have maximum negotiation benefits. From taking care of all legal and financial terms to making sure that the lease agreement you’re about to sign incorporates everything that you’ve discussed till now, a professional agent proves to be invaluable.
We, 1st Source, specializing in leasing, selling, and buying both residential and commercial properties in various prime locations over Florida. If you want to find commercial properties quickly that work best for your business in the future, get in touch with us now.
We are here to advise you when leasing a commercial property is worth the price and when to cut and run.