Having a business that is growing larger and larger can be a reason to move it out of your home and into a commercial warehouse or office. However, leasing a space can provide challenges and concerns that you might not expect if you're only used to renting apartments or homes. Here's what you've got to know when getting ready to lease a commercial space of any kind.
Tenants Can Give You the Inside Scoop
One of the first things you need to do if you're considering a commercial lease is to determine whether others are leasing in the same building or area. Tenants who are already paying the landlord can be invaluable sources of information. They can tell you whether the landlord makes repairs right away and communicates changes well. It's a smart idea to have a chat with other leasees to find out what you can expect when you're in the building and a paying tenant.
Competitors Might Be Leasing Space in the Same Building
The owners of any space that you're looking at are not responsible to any one party; you may be shocked to realize that they are renting space to a direct competitor of yours. That's why you need to ask, directly, about any possible competitors who are are renting from the same landlord. Doing so can help you avoid competition nearby.
You Might Not Be Able to Sublet
If you've started to realize that you only need to rent warehouse or office space for busy times of the year, you may entertain the notion that you'll help a friend out or another small business by renting them your space during times when you don't really need the space. This can cause a problem for a number of different reasons. The principal issue you'll need to deal with is whether your lease allows you to rent to other parties, a practice called 'subletting'. If your landlord finds out that you're doing this, your own lease could be jeopardized.
To avoid problems, discuss renting to others when you are talking about your upcoming lease with a prospective landlord. That way, you'll know what is and is not permitted.
With the information above, you should be able to better understand the terms of any commercial lease you're thinking about signing. Be sure to talk with possible landlords and others to find a lease that you're comfortable with and feel good about. For more information, contact companies like Hartman Income REIT.