Commercial Rental Property
Learn about commercial property for rent or lease
Commercial property leasing is a complex and expensive endeavor, but with the right information you will be able to find an ideal and affordable space that can make for a successful business venture. Learn about the types of commercial properties for lease and what to consider when it comes to choosing a location and deciding on lease terms.
Types of Commercial Property for Lease
Different rentals will require different types of leases, and many lease features will be based on the location of the commercial rental property. For instance, a retail store rental should take foot traffic and vehicle traffic into consideration to maximize potential clientele. On the other hand, storage rentals are often located outside of busy areas to offer more space and privacy to renters, and you will have to consider employee accessibility and perhaps room for further expansion when looking into an office rental.
Business or industrial parks will lease office space at a cheaper cost than prime-location retail buildings. Other types of businesses may be better run out of a mall or traditional storefront, but look into extra costs on top of rent. A space in a mall may require you to share some of your profits with the landlord on top of your base rent, while a business park will typically charge less. Finding affordable commercial property for rent can be a challenging endeavor, so you may want to connect with a commercial real estate broker who has had success in dealing with the type of lease you need.
Commercial Property Lease Terms
Regardless of the type of commercial rental, there is no standard lease agreement. Whether you are looking for a retail store rental or a studio rental, the terms of the agreement should be flexible to allow for a short-term or longer-term lease, from 3 to 10 years. You can be penalized harshly for breaking a lease agreement, so weigh your needs and expectations carefully to ensure that you can fulfill your undertaking.
Though commercial real estate leasing will vary considerably, there are a few general types of leases available, including gross lease, net lease and ground lease. Each requires the tenant to pay a different portion of the fees and operating expenses of the space, and this may consist of just one basic rental fee or it can include all rental costs, expenses and taxes. A commercial property lease must take several laws and expenses into consideration, issues that an experienced commercial real estate agent can help you understand and satisfy.