What To Know When Leasing Commercial Real Estate

When considering leasing commercial real estate, it’s essential to ask a range of questions to ensure that the property meets your business needs and financial objectives. Here are some key questions to ask:

1. Location and Accessibility:
– Is the location suitable for my business needs?
– Is the property easily accessible to customers, employees, and suppliers?
– Are there public transportation options nearby?

2. Space and Layout:
– Does the property offer the necessary square footage for my business operations?
– Is the layout of the space conducive to my business activities?
– Are there any limitations or restrictions on how I can use the space?

3. Lease Terms and Conditions:
– What is the duration of the lease agreement, and are there options for renewal or termination?
– What are the lease terms?
– Are there any additional fees or expenses?

4. Property Condition and Maintenance:
– What is the condition of the property?
– Who is responsible for maintenance and repairs?
– Are there any ongoing or planned renovations or construction projects that may impact my business?

5. Zoning and Permits:
– Is the property zoned for my intended business activities?
– Are there any restrictions or requirements regarding permits or licenses?
– Are there any zoning changes or development plans in the area that may affect the property in the future?

6. Tenant Improvements and Customization:
– Are there opportunities for tenant improvements or customization of the space to meet my specific needs?
– What is the landlord’s policy regarding alterations or modifications to the property?

7. Access to Amenities and Services:
– What amenities and services are available on-site or nearby?
– Are there any shared facilities or common areas that I can access as a tenant?

8. Tenant Rights and Responsibilities:
– What are your rights and responsibilities as a tenant under the lease agreement?
– What are the landlord’s obligations regarding property?

9. Financial Considerations:
– What is the total cost of leasing the property?
– How does the lease agreement impact my cash flow and financial projections?
– Are there any incentives or concessions available for new tenants?

10. Exit Strategy:
– What are my options for early termination or subleasing if my business circumstances change?
– What are the penalties or costs associated with breaking the lease agreement?

By asking these questions and thoroughly evaluating the commercial real estate lease agreement, you can make informed decisions that align with your business goals and requirements. Additionally, consulting with a real estate attorney or advisor can provide valuable insights and ensure that you fully understand the terms and implications of the lease agreement.

— Anita Hartog
Local Real Estate Professional  – Hartogrealtygroup@gmail.com – 323-313-3420