There are comparative advantages for renting a commercial property over a purchase. Commercial properties for rent do not require substantial initial capital and offer more flexibility. Nevertheless, your lease experience may vary considerably. This post highlights essential factors to weigh when renting a commercial property.
The local zoning laws can limit or enhance your ability to conduct business. Typically, state and local zoning laws dictate the type of business activities one can run in a given area. Thus, it becomes crucial to consider the zoning laws and their implications to the business plan. For instance, zoning laws may restrict the activities in a particular locality to residential, commercial, industrial, recreational, or mixed-use. Consider whether the zoning laws let you legally conduct business when selecting commercial properties for rent.
Location of the Property
The location of the commercial properties for rent will impact your business outcomes. Therefore, you must be strategic and deliberate when analyzing a business location. Essentially, consider whether the site is accessible and interlinked with different transport networks. Then, ask yourself whether your potential customers will find the area safe and secure. In addition, think about the availability of competitors in the market. Ordinarily, it makes sense to select a commercial property with fewer competitors. Besides, consider the nature of business activities offered by other tenants and how they complement your venture.
Quality Structure and Amenities
Consider the condition of the structure and the amenities available at the commercial building. Look for commercial properties for rent that are well-maintained. This way, you have guarantees that the facility meets occupational health and safety standards. A well-maintained structure will promote your corporate image and eliminate remodeling costs. In addition, evaluate the amenities available in the facility. Does the building have usable electricity, plumbing, heating, and air conditioning system? Are there washrooms in the facility? Is there reliable Wi-Fi connectivity to support your e-commerce? Rent a property that offers a good business atmosphere and reduces the need to revamp the space.
Lease Terms and Agreements
Commercial properties for rent involve signing a lease agreement. The lease agreement is meant to protect both the landlord and the tenant. Although most commercial leases are standard, it is crucial to read through the clauses to understand the obligations and penalties. Notably, the contracts are usually flexible allowing room to negotiate and improve the terms.
Check the following when evaluating written agreements:
- Applicable rent amount including base and additional expenses
- Lease duration and termination
- Payment duration and procedure
- Property care and maintenance
- Responsibility for utility, insurance, and tax expenses
- Specific use and subletting
Although commercial properties for rent are very flexible, ensure you know what you are getting before leasing. An entry and exit strategy will enhance your lease experience and contribute to your business goals.
For more information about commercial property for rent, contact a real estate professional near you.