Things to know before looking at commercial real estate for lease Penticton
Before you sign your finances away on commercial real estate for lease in Penticton, there are some things to know. In order to minimize financial risk and increase your chances of success, there are many things to pay close mind to. When it comes to your business lease, thorough research and trusted guidance will help you to find a lease that reflects your company’s needs. As you work towards finding the perfect space for your business, we’ve compiled a list of pointers to help ease the process.
Know the difference between a commercial lease and a residential lease.
While they may seem very similar at first glance, a closer look will open the eye to a few key distinctions. When you sign a lease for a commercial space, the biggest differences are in the length, use, and taxes.
A residential tenant’s lease is most often much shorter than one meant for a place of business. This is important to note, because you don’t want to confuse the estimated length of time your business is going to spend in a given location. It could hinder future plans and cause unwanted future stress. The average commercial lease length will range from 3 to 5 years.
The use of a commercial space is fairly self-explanatory, however, be wary of city zoning restrictions that could inhibit your ability to operate. Talk with your REALTOR® if you have any concerns about your ability to conduct your business in a certain property. Otherwise, a commercial lease is designed to bind a landlord with their tenant.
One of the most important differences between commercial and residential leases is in the taxes. As a residential occupant, you rarely have to pay property taxes. This is not true when it comes to a commercial lease. Commercial lessees are sometimes required to pay a portion of the property taxes. In addition to this, there is less protection and regulation for commercial tenants, but more room for negotiation.
What should be included in your Penticton commercial real estate for lease contract.
These are a few things to consider before you sign your lease. Make sure it includes at the very least: duration, cost, security deposits, additional fees, and any other rent information necessary to you as the lessee. These factors must be outlined in the lease to ensure your security as business owner. The presence of certain information can also define the validity of the lease, so it is important to check with your REALTOR® before signing.
Know every detail.
One of the biggest steps that must be taken before deciding to lease a commercial property is doing solid research of the location and building owner. This will allow you to determine if the area is ideal for your business and ensure your landlord is fair.
The location of your business is everything. It allows you to reach your target customer at their own convenience. This means taking the time to understand your ideal client in order to find a location that will allow the most traffic to your business. As you begin to browse commercial real estate for lease Penticton, keep this in mind.
Having an honest and fair landlord is always a bonus. Many people overlook this step and proceed with their lease before doing a background check on their landlord and/or building owner. A lease is just another form of business relationship, and like any relationship it’s important to know who you’re getting into bed with. Ensuring their honesty and financial stability will give you comfort in the partnership and allow things to proceed smoothly. If a landlord or building owner aren’t in a comfortable financial position, it could cause instability for your business. Late and missed payments may result in you being evicted due to foreclosure. If you’re unsure of their reliability, but are set on moving in, look into a non disturbance agreement. These are all things you will avoid in doing your due diligence and covering all bases before signing a lease.
Things to keep in mind before committing to commercial real estate for lease Penticton.
There are many things to pay attention to when looking to sign a commercial lease, but here are few major ones to store in your brain before signing. For example, lease terms, rent structure, and transfer structure.
Lease terms are an important factor to consider when deciding on a property. For instance, a short term lease can provide flexibility and peace of mind. Especially because you won’t have to escape a lengthy contract if things go south. However, a longer contract may provide you with the time you need to grow and establish your company. There are pros and cons to both, it merely depends on your company’s current and future goals.
Rent structure is another vital piece of information to be familiar with before signing a lease. It will allow you to budget and plan accordingly to the cost of your space. Within this topic you will also be able to determine what yearly rent increases will/can look. Financially, this is a very key piece of knowledge to have before committing to a property.
Contact me today if you have any further questions about commercial leasing or are interested in a property. I look forward to helping you find the perfect place for you to grow your business!