If you are planning to set up an office outside your home, the first thing you may consider is looking for a commercial space where you can operate your business. As a first-timer, you may be overwhelmed with the leasing terms and how it works. However, we can help you with the basics of commercial leasing.
If you are moving into a commercial space, you would have to pay rent. This will start with the base rent, which is the least you would have to pay every month. Also, additional fees will be added to the base rent amount depending on the agreement.
Types of leasing terms
There are different types of commercial leasing phoenix. First is the double net lease, which means two additional costs – specifically tax and insurance costs — will be added on top of the base rent.
On the other hand, a fully-serviced lease (also known as “gross lease”) involves extra payments by your landlord. However, it is more likely considered additional costs on top of the base rent. This includes the use of other parts of the space such as restrooms, elevator, stairwells, and many more.
Net lease, on the other hand, requires you to pay for taxes, insurance, and maintenance costs which are incurred by the landlord. Payment may be 100 percent of the total cost or only a part of it. Meanwhile, percentage lease involves paying the leasing fee depending on your monthly sales. This is usually applicable if you are renting space in a mall or the like.
How to make the most out of renting a commercial space
Here are some tips to prevent common mistakes when renting a commercial space:
- Negotiate
Most renters would instantly agree with the leasing terms because they think they already made the best deal around. However, there may be other provisions included in the contract that you may not have immediately understood. That is why it is important to negotiate and check the contract carefully to avoid regrets in the end.
- Avoid a long-term deal when not necessary
A lot of commercial space tenants don’t utilize their rental space in the long run, which means you are not getting your money and investment’s worth. Instead, there are other flexible rental options available and avoid getting locked into a long-term rental deal that can be a waste of money.
- Check whether there is a tenant improvement budget
For tenants, it is important to know whether your leasing agreement has a tenant improvement budget. This will help you create the type of office environment you want to achieve for your business. More so, some landlords may consider having tenants absorb part of the cost for building your office space.
Finding the best commercial leasing phoenix
In finding commercial leasing in your local area, it is important to find companies that can help you compare commercial space cost that is more affordable. It is also crucial to find a real estate company that supports all clients and has a good reputation in the real estate industry.
