Businesses lease commercial space for a variety of reasons. Perhaps they need more space than what their home office can provide, or maybe the business is expanding and needs to be in a more centralized location. Whatever the reason, companies tend to lease commercial space because it offers several benefits.
- Flexibility – Leasing commercial space offers businesses flexibility regarding term length and size. They can find an area that’s the perfect size for their current needs, and they’re not locked into a long-term contract like they would be if they bought the property.
- Low Cost – Leasing commercial space is often much more affordable than buying property. This is especially true when factoring in property taxes and maintenance fees.
- Convenience – Businesses leasing commercial space can often get started quickly without going through the lengthy process of finding and buying property. This convenience can be a big plus for businesses expanding speedily or on a tight timeline.
- Scalability – Leasing commercial space allows businesses to scale up or down as needed. If their business grows, they can easily find a larger area without selling their property and relocating. And if their business shrinks, they can quickly downsize without any penalties.
Many start with leasing because it might be easier to perform. Also, it is much more affordable to do in case you have to pull out. However, you might have enough funds to purchase the commercial space instead of paying monthly. If you want to do that, these steps are critical.
Discuss with the Landlord
When you purchase a commercial office space, discussing your plans with the landlord is essential. They may have concerns or suggestions you hadn’t thought of, and they could potentially have some insights into the market that could help you secure the best deal.
The landlord will also want to know if you plan on buying or just leasing the property. If you’re renting, they’ll need to know how long you plan on staying, what your intentions are for the space, and if you have any other tenants in mind.
If you’re planning on buying the property, the landlord will want to know your budget, what kind of terms you’re hoping to negotiate, and when you plan on closing. They may also want to be involved or have a representative present at the finish.
By discussing your plans with the landlord, you can ensure that everyone is on the same page and that there are no surprises down the road. This communication can also help build a positive relationship with your landlord, which could come in handy down the road.
Hire a Real Estate Attorney
Even if the discussions with the landlord go smoothly, hiring a real estate attorney will be in your best interest. They can help you navigate the paperwork, review the contract, and ensure everything is in order.
There are many moving parts when buying a commercial office space. A real estate attorney can help you track everything and ensure that nothing falls through the cracks.
They can also help you negotiate better terms, identify potential red flags, and protect your interests throughout the process.
Hire a Commercial Real Estate Agent
While you’re not required to hire a commercial real estate agent, it’s generally a good idea. They will be familiar with the market and can help you find the right property at the right price.
A good commercial real estate agent will also be able to help you negotiate the terms of your lease or purchase, and they will have a network of contacts that can help you get the best deal possible.
Due diligence is critical when buying a commercial office space. By hiring a real estate attorney and a commercial real estate agent, you can be sure that you’re getting the best deal possible and that everything is in order.
Get a Home Inspection
Like with any property purchase, it’s essential to get a home inspection before buying a commercial office space. This will ensure that there are no significant problems with the property that could cost you a lot of money down the road.
The inspector will look for structural problems, water damage, and electrical issues, relying on a reliable list to ensure the space is functional and worth the investment. They will also check for code violations that could become a headache later.
While you’re not required to get a home inspection, it’s generally a good idea. It can give you peace of mind and help you avoid any major problems down the road.
Commercial office space can be a great way to invest in your business. If you’re planning on purchasing a property, discuss your plans with the landlord, hire a real estate attorney, and get a home inspection. By taking these steps, you can ensure you’re getting the best deal possible. Moreover, being well prepared can avoid any surprises down the road.