| ● |
How long do I
plan to stay? You need to project how long
your business can operate effectively in the space you
plan to lease. Although all lease terms are negotiable,
most short-term leases are for 3 to 5 years, and
long-term leases are for 10
years.
|
| ● |
Can I get out
of the lease? Breaking a lease can result in
serious penalties: You could lose your security deposit,
be denied access to the space and even be sued. Make
sure you're committed to the length of the lease and the
location before you sign. |
Ask your
broker:
|
| ● |
What kind of
experience do you have? Commercial real estate is a
specialized industry. Most brokers concentrate on one or
two property types, such as offices or warehouses.
Select a broker who has a proven track record in the
type of space you need.
|
| ● |
Are my space
needs too big or too small for you? Work with a
broker who fits the right profile in terms of your space
needs. A broker who works on large-scale spaces may not
work as hard for a client seeking only 1,200 square feet
of space.
|
| ● |
Do you have
any certifications? Experience is the best way to
judge the caliber of a broker; however, designations
from recognized real estate associations show that a
broker has gone the extra mile. |
Ask the
landlord:
|
| ● |
What is the
tenant mix in your building? Opposites don't always
attract when it comes to business. Be cautious about
leasing space in a building where the majority of the
tenant's corporate cultures are radically different from
your company's.
|
| ● |
Will there be
onsite management? A manager probably won't be
present at a small building. If a manager or custodian
is not on the premises during regular business hours,
get assurance that someone will be on call to respond to
maintenance emergencies.
|
| ● |
What kind of
build-outs or amenities will you provide? Landlords
frequently remodel spaces, provide moving allowances or
offer additional covered parking spaces as an incentive
to a new tenant.
|
| ● |
What are the
terms of the lease? The monthly rent is, of course,
a paramount issue. But a prospective tenant also needs
to know if the lease includes a rent-escalation clause,
which lets the landlord increase rent in the future.
Also find out if you're required to pay charges for
maintenance, taxes or other costs — often called a
"triple net" or "net-net-net" lease.
|
| ● |
Is there an
option to sublease? With this option, if you don't
need all the space you've rented, you can sublease some
of it to another company. The ability to rent out part
or all of your space can be vital if your business grows
or if you need to relocate.
|
| In addition, make sure to read these
articles: |
 |
Questions to Ask Before You Sign a
Commercial Real Estate Lease |
| ● |
Can
I Get Out of a Commercial
Lease? |
| ● |
Securing
the Right Amount of Space for Your Growing
Business |
| ● |
Understanding
Lease-Renewal Options |
| ● |
Advantages
to Leasing Your Office Space |
| ● |
Breaking
a Business
Lease |
