Negotiating a commercial real estate lease well can be the difference between gaining a valuable property that fits your needs and property with loopholes and future losses. In Q1 of 2015, commercial real estate sales were up by 11%, supporting evidence that there seems to be increased competition for quality spaces that meet the needs of businesses. The following tips can assist prospective buyers reduce leasing stress to focus on proactive acquisition strategies.
Understand Your Needs
Basics like space, utilities, parking, storage, and employee quarters should be reviewed before determining ideal commercial real estate options. Listing these needs will assist prioritization of essentials versus luxuries. Larger businesses may be afford to foot the bill for bigger break rooms, however small start-up should feel free to get creative with space.
Research is Everything
Obtain the average cost of the commercial space you’re seeking. Whether seeking to establish retail, office, or industrial, market trends effecting these industries can help one pinpoint a reasonable price. A commercial real estate broker should also be able to show you historical data regarding prospective locations. Preferably work with experienced brokers with commercial real estate experience.
It’s time to get a real estate broker once steps one and two have been achieved. In addition to researching your broker, or even going through people knowledgeable of a good commercial broker, consult a lawyer. An attorney experienced in commercial real estate who can explain terms is invaluable to negotiating a commercial real estate lease.
Clearly State Aims and Ask Questions
Communicate needs very clearly, even putting things in writing for your broker. Whether subleasing, policies, regulations, or special tax situations, communication regarding the details of desired property will be of paramount importance. Use of a lawyer is also important here, as any contractual language that is not understood should be run by a lawyer.
All of these steps help individuals locate the type of property that is needed, while giving the broker what is needed to steer buyers in the right direction. When you’ve done everything that can be done as potential buyer or renter, it’s time to find the most experienced and professional real estate brokerages to find the best properties possible. Greenberg and Company are a premier commercial real estate brokerage company that can assist with this effort.
For questions regarding needed commercial real estate or development, contact us today