5 Things to Consider When Leasing A Commercial Premise
If your business is ready to take the next step and acquire its own space to operate in, then you might be looking into leasing. But there are a myriad of factors that must be considered when obtaining a premise in this way.
Not only will this involve finding a premise that’s the right size for your business, but one that has all of the amenities. Alongside those aspects, before signing on the dotted line, you’ll want to ensure that you’ve comprehensively thought about the following:
- The Terms of The Lease
When leasing a commercial premise, it’s vital that you have read and understood the terms of it. Typically, the lease will be a lot shorter than that of residential properties, therefore, you want to efficiently plan what you will do when the lease comes to an end.
Does it allow for you to extend it? This is particularly important if you’re considering fitting out the unit and spending on renovating it so that it’s suitable for your business. Of course, if you want to test the waters and see how successful your business is in the area, then perhaps a shorter-term lease is more appropriate.
When looking at the terms, it’s advisable that you seek professional help. A real estate lawyer (for example, the options at kellylegalgroup.com) can help to examine the terms and conditions, to ensure that you’re getting the best space for your money.
- Where The Premise is Located
One of the most crucial aspects you should consider when leasing is the location. The location can make a huge difference to the number of customers that visit, your profits and the overall longevity of your business. So before you settle on one, spend some time in the location and conduct comprehensive research.
Alongside the location, you’ll also want to discover who your neighbors will be. For example, you don’t want to move into a premise, only to find that you’re located next to your competitors or a business with a negative reputation.
- The CAM Terms
For those that aren’t aware, CAM (also known as Common Area Maintenance) Terms are a common part of most leases. When leasing a building, you will be allocated a percentage of fees that you’re responsible for – which will be based on the amount of space that you’re renting.
A confusing aspect of the lease, you’ll need to ensure that it doesn’t include legal fees with negotiating leases or is directly going into your landlord’s pockets.
- Other Related Expenses
Before leasing, you need to be aware of the multitude of expenses that come with the process. Typically, these will include the likes of repair and maintenance costs and any costs associated with shared utilities.
- Your Business Structure
As a prospective tenant, you’ll need to ensure that your corporate structure is in place. From making sure that you’ve received your Articles of Organization (if you’re an LLC) to filing your Articles of Incorporation, these should be taken care of before you sign the lease.
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