What to Consider When Renting a Commercial Space for Your Business
If you're looking to rent a new space for your commercial business there are some things that you need to bear in mind before you sign the lease agreement. The location where you place your business is very important.
However, this is just one of the major concerns. You also need to bear in mind the type of lease you will be signing as well as how the environment can affect your business.
Here's a look at the top things you need to consider when renting a commercial space.
Location is Key
When you are leasing office space, the location should be at the forefront of your thoughts.
You want to make sure that it is a safe community so that you and your employees will be secure. However, you also want to take a look at the competition in the neighborhood as well.
The last thing you want is to move into an area where your business will not stand out because there are so many other people doing the same thing.
You also need to consider the income level of the people in the community, if your business will be dependent on local profits. These types of observations can help you make a good decision when deciding on the type of commercial property you should rent.
Think about Subleasing
When business owners rent a property oftentimes many of them will sublease a portion of the business to finance their expenses. For example, if you are running a hair salon, you may rent a portion of the business to a nail technician so that you can share the space.
Leasing a portion of the place to service that closely parallels your business but does not compete with it is a good idea. This can help to bring in new customers as well as help to pay the rent.
Getting Insurance
Most landlords want you to get some form of insurance before they sign off on a lease agreement with you. Make sure that the insurance terms are in your best interests and not just the landlord's. Prepare to negotiate a commercial lease. Negotiations can take anywhere from a few days to a month or longer.
You don't want to be over-insured for the property but you don't want to be under insurance as well. This is why you need to ensure that you do due diligence before signing off on any insurance agreement.
Negotiating Is Key
Before you sign off on a lease agreement make sure that you negotiate as much as possible. You want to strike a delicate balance between accepting what you're being offered and making it known to the landlord that you would appreciate any reduction in the rent that is possible.
The worst they can say is that they can't give you a discount. The best outcome would be that they reduce the rental costs for you. The only way you're going to know is if you ask, so don't be afraid to.
