5 Commercial real estate terms you should know
When looking to invest in Penticton commercial real estate, you’re going to be bombarded with terms you’ve never heard about, and this can be quite confusing for a first time buyer. We’ve compiled a list of these terms and their meanings, to make the process a little easier for you.
Right of First Refusal
A right of refusal clause means that your landlord must offer you additional space to lease before they are allowed to offer it to the public. This can be really beneficial to the growth of your business in the long run, as it gives you an opportunity to lease space in a popular building.
Option to Purchase
This clause is most common when leasing an entire building. Option to Purchase means you are entitled to information on how you can purchase the building you are leasing. Read it carefully as it should outline the terms you need to meet in order to be eligible to buy the building, such as the price you would pay.
Usable Square Footage
This term is more applicable if you are not leasing the entire building, as Usable Square Footage is the space that you are actually occupying within the building.
Rentable Square Footage
Rental square footage is the amount of square footage you share with other tenants, on top of the usable square footage already included in your lease. This applies to areas such as bathrooms located in the hallway of the building, reception areas, fitness centers, elevators and eating areas.
This is the number of spots that are reserved for you and your employees. You take the rentable square footage of your space and then divide it by the number of parking spots. This one is important when purchasing Penticton commercial real estate for sale, as you need to know how many spots your employees have, and where they can park.
There are many things first time buyers need to know when purchasing or commercial real estate for lease Penticton. For more information contact your expert commercial realtor Penticton, Peter Byrnes!