5 Things to Look for When Renting Commercial Property
Do you want to rent a commercial space for your business? Whether you need a retail, office, or industrial space for your business, commercial properties have distinct concerns that must be addressed before settling on one.
These 5 pointers will definitely come in handy when looking for a commercial property for rent:
1. Consider the Location
Before settling on a commercial space for rent, location is one of the most crucial factors. Is the location convenient for your team’s daily commute? Can your client base locate it easily?
Your location should be close to essential amenities like banks, ATMs, hospitals, airports, and bus stations. Whether you are a wholesaler, retailer, or service provider, you need to be in a space and location that is easily accessible.
2. Cost of Occupancy
The cost of occupancy is the overall monthly expense for your tenancy. Get a quote from your potential landlord up front so you can plan accordingly and avoid unpleasant surprises later on.
These costs include rent, parking fees, all utility fees, operating costs, levies, and your proportionate share of rates and taxes. These costs are usually quoted without VAT. In addition, it is essential to establish your electrical provider, as the rates charged can vary.
If you are looking for commercial properties for rent in Canada, you should compare property fees for several competing commercial spaces to make the best choice for your business.
3. Tenant Improvements
When examining a new commercial property, you may find that some modifications are needed to meet your specific business needs. It is essential to be clear about the state of the property to be rented, the types of modifications you will make to the structure, and the degree of control a tenant have over these improvements.
Ask about who owns the improvements and whether the landlord will pay for any costs, especially if they could increase the property’s value. Additionally, you should find out if any of those enhancements need to be taken out at the end of the rental period.
Negotiating tenant improvements before signing any contract is crucial to avoid getting trapped in a space you cannot adequately utilize.
4. Have a Written Agreement
A well-written rental agreement eliminates any ambiguity between the landlord and tenant. It allows you to do your business without interruption and helps you avoid potential legal conflicts.
Before renting a commercial property, it is essential to verify facts such as the names of both parties, the possessions, the duration of the rental agreement, the lock-in period, the effective dates, the increment clause, and warranties.
5. Clarity of Insurance
When renting a commercial property, it is essential to clarify with the landlord whether or not you must pay for insurance. Some landlords may transfer their property insurance to you if they have it. However, you might need to acquire insurance or liability policies for your business in other instances.
Conclusion
Hiring a real estate broker with expertise in commercial property rentals is vital. However, consider consulting an attorney before renting a commercial space, as they can advise you on whether the contract’s language appropriately reflects the conditions of your agreement.
