We've all done it -- we've all signed a contract without thinking it over because we know what it involves. Except, do you know everything you're getting into with your commercial lease?
We aren't trying to say you're being scammed but rather, there are many commercial opportunities within Mt.Laurel property management, you just have to find them.
Commercial lease analysis (or real estate investment analysis) helps you get the most out of your rental agreement. Keep reading, and we'll give you the commercial leasing tips you need to find hidden opportunities.
What Is Commercial Lease Analysis?
First, we should explain commercial lease analysis, it's when you explore the financial aspects of a commercial property, including rent, fees, and various other contractual agreements.
The goal is to determine the property's cost and its profitability. Think of lease analysis as pre-arranging the best odds for your business.
Helpful Lease Negotiation Strategies
Your lease is an opportunity within itself, you can use it to open negotiations with the landlord. You can ask to add a "rent-free period" clause or to cap annual price increases.
Sometimes business isn't booming. It can be helpful to have a way to protect yourself when your finances are rocky.
Research Your Local Market
It's never a good idea to go into a negotiation blind. Learn what the local market is like to sway things in your favor. You should check vacancy rates and rental rate trends.
For example, you may want to discuss rate freezes during occupancy. Landlords may be more likely to hear you out if they're having trouble renting their properties.
Save on Hidden Costs and Fees
Most things come with hidden costs, real estate is no exception. You will pay for more than just the rent. There are maintenance fees, taxes, and utilities costs.
Commercial lease analysis can help you negotiate these fees. You may find a way to streamline and reduce these costs.
Check Renewal Terms
Your lease will tell you when it's time to renew the lease. Keep this date in mind so you'll have time to prepare whatever new terms you have in mind, you may want to renegotiate a maintenance clause.
Mitigate Risk
One handy commercial leasing tip is to reduce as much risk as possible. The best way to do this is by diversifying your tenant base. Don't rely on a single type of tenant or industry, this way you'll have something to fall back on.
Seeking Hidden Opportunities in Leasing
Real estate investment analysis can help you find the best property to propel your business forward. Commercial lease analysis puts you in the best position to negotiate favorable terms for your rental contract.
PMI Garden State can't analyze your lease for you, all we can offer is helpful advice like this article. However, we can give you professional property management services.
PMI Garden State offers vacancy marketing, tenant placement, and property maintenance. We offer free rental analysis, we can tell you what your property could be worth. Contact us with your questions and concerns.
