You may be looking into leasing a commercial property in the Texas area. If so, this article is meant to provide you with a few tips and tricks while you dive into the process. Leasing commercial property can be a very lucrative deal if handled properly. Learning to negotiate is going to be your biggest asset, especially when it comes time to negotiate the commercial lease, it can be the lengthiest and most important process of leasing commercial properties. Down below we will discuss some tips and tricks for you to have in mind while leasing a commercial property.
Tips for Signing a Commercial Lease
Tips for Signing a Commercial Lease in Texas
As a commercial real estate property developer, you’ll be wanting to quickly fill your vacancies with qualified tenants. Here we will cover some basic tips to help you sign tenants to a commercial lease. Let’s get started!
Calculate all of Your Cost
Add up all of your cost, all while calculating your leasing rates for commercial properties encompasses more than just the cost of rent. You should also keep in mind that any taxes or fees will be charged, or maintenance needs that you as the renter will acquire as the person who is renting the commercial space.
Always Review Your Contract
Just as with any legally binding document you should always have an attorney look it over, as a precautionary measure. It is advised that when it comes to commercial real estate that your attorney be one who specializes in commercial real estate law, and even better if they have handled several lease reviews.
Start to know the Definitions of Lease Options
Make sure you comprehend and know what the difference is between a gross rent lease, modified gross lease, or even a triple net lease and be sure to not look over how these rates are applied in your proposed commercial lease.
Take into consideration the length of Lease Terms
The most commonly noted standard commercial lease term is between three to five years. Longer lease terms may be exactly what you need if you need to spread out the profit loss of tenant enhancements paid for by the landlord that will be required to be reimbursed to the property owner. This will allow a longer time span to pay this expense back.
Compare the Market Rates
Go out and scope out similar properties and be mindful of what they are charging per square footage of usable space. When you do this it will assist you in negotiating the rates for your property, and allow you the visual idea of how much you can bend and break while negotiating the lease.
Research Surrounding Properties
n a more perfect world, The very first instinctive lead is the right fit for your commercial space. Unfortunately this is hardly ever what happens. Start learning what it is that your business will need and start building on those needs, and do not leave out location, neighboring businesses, and proximity to major highways.
Lastly, Renewal Terms
When you begin the lease process try to decide if you want a built in renewal written within it. .Meaning it is up to you as the tenant if you renew it or not. That is a nice little safety net!
Casey Development, Ltd: Commercial Real Estate Developers in Texas
Casey Development, Ltd. has the experience and expertise needed to help you not only develop a commercial property, but to find the right tenants for your space. Contact our team today to learn more about how we can help you start your commercial real estate investing journey in Central Texas.