Leasing a commercial space is an important decision that businesses have to make. While choosing a space, you need to consider not just your day-to-day operations but also your business’s long-term success. You need to understand the lease terms, evaluate the location and consider various other things before signing the lease. Here’s a quick checklist that can guide you through the leasing process with:
Know Your Lease Type
You need to understand the kind of lease you are signing. Leases come in various forms, with each type putting the responsibilities differently on landlords and tenants. In a gross lease, the tenant typically needs to pay one flat rate while the landlord takes care of expenses such as taxes and maintenance. On the other hand, net leases and triple net (NNN) leases put more of the costs on the tenant. This is why, before signing, you must ask your landlord to explain in detail what is included in your rent and what is not. This clarity can save you from financial surprises down the line.
Check Zoning and Use Regulations
Even if you have found the perfect space, it may not work for you if it isn’t legally zoned for your business type. Before leasing, it is vital to confirm that the property meets local zoning laws for your intended use. This is especially important for specialized businesses like restaurants, medical practices and manufacturing facilities. You can explore some mixed-use developments like Founders Square, which are zoned for mixed-use and allow retail, office and residential activities. Choosing a location like this can simplify your due diligence and help attract more customers.
Inspect the Property Inside and Out
You may feel impressed after looking at a commercial property, but before making a decision, you must take the time to inspect it carefully. Check the condition of key systems like HVAC, electrical wiring, plumbing and roofing. Also assess the ADA compliance, safety features and availability of parking spaces. In newer developments like Imperial 41 and Founders Square, the infrastructure has been recently built and is already up to code, so by choosing a space there, you can be at ease.
Understand Lease Term and Exit Clauses
Check how long the lease duration is and what can be done if your needs change in the future. Going for shorter leases offers more flexibility, while longer ones often come with better rental terms. Make sure your lease includes details on renewal options, subletting rights and early termination policies. Read the fine print carefully, as it can have a huge impact on your business operations.
Clarify CAM Fees and Shared Expenses
Discuss the Common Area Maintenance (CAM) fees with your landlord. These fees go towards maintaining shared spaces like landscaping, cleaning, lighting and building security. These costs are charged on top of your base rent and can vary a lot depending on the property you choose. Ensure that there is transparency around CAM fees and you can get a clear breakdown of these expenses upfront.
Discuss Build-Out and Renovation Options
You may want to customize the space for your business, like add some walls, update the lighting or redesign the layout. However, before making these changes, you must check your lease for terms on tenant improvements. Some landlords provide a tenant improvement allowance to help with the build-out and renovation costs, whereas others require pre-approval for any changes.
Negotiate the Terms
Sometimes people think that a commercial lease is not negotiable, but that’s not true. Most lease terms are negotiable, especially if you are moving into a high-quality space or signing a long-term lease with the landlord. You may be able to negotiate a lower rent, a rent-free period, or build-out support.
Check out Barron Collier Commercial’s developments like Ave Maria, Imperial 41 and Founders Square to find the right property for your business. Our experienced team can help you find promising commercial real estate in Naples, FL, based on your specific business requirements. Connect with us today to find a suitable property that can boost your business growth.