What questions should I ask before leasing a commercial property?

Regardless of the size of your business, it’s important to find a suitable space that meets your individual needs. Knowing what questions to ask when viewing a commercial property is crucial for evaluating your options thoroughly when looking at several different spaces.

Here are just some of the important questions a good commercial real estate agent will get answers to when you’re viewing a potential property:

WHAT TYPE LEASE IS BEING OFFERED?

Modified Gross? Triple Net? Full Service? Knowing what type of commercial lease is being offered is one of the most important items to consider when looking at properties for your new office space. The type of lease determines how your rent will be calculated.

HOW LONG IS THE LEASE TERM?

A lease term length can be a decisive factor in your property search. A typical term is 3 to 5 years but can be up to 10 years or longer. Long-term contracts give you more negotiating leverage and security with predictable rental costs.

Will the rent be increased?

Typically rents increase over time to keep up with inflation. This could either be an annual increase of 2-3%, or when a renewal option is exercised. But rarely will the fifth year's rent be the same as the first year's rent.

Can the lease be renewed when it expires?

There are various options for the renewal of the lease. These should be determined before signing. This can help you lock in rent prices regardless of market rates in the future.

What utilities are included in the rent?

There are various utilities that may or may not be covered in the rent. These are electricity, water, cleaning, and HVAC (heating, ventilation, and air-conditioning).

Who pays for property improvements?

If you need to carry out property improvements in your rented space, you need to know who pays for them. Any improvements, even décor, may also have to be approved by the landlord.

HOW MUCH PARKING IS ALLOTTED TO THE RENTER?

If you have multiple employees, you’ll want to make sure you have enough parking for everyone. It’s best to find out the parking situation when you’re viewing a corporate rental space to understand how that will affect your team.

IS THERE ROOM FOR EXPANSION?

If you plan to expand your team or services in the future at the same location, be sure to ask about what available space is offered in or near the building.

These are just some of the important questions to ask when evaluating a commercial property. The difficulty is, often you don't know what you don't know. That is why you need the right agent to lead the way.

I'm here to ask the right questions to find you the right space.