When considering a commercial property for lease, there are several essential considerations. The type of business determines whether the location is vital to its success. For example, a customer-driven company must be near shopping centers and trafficked areas.
Building Amenities
A property’s amenities are what set it apart from other options in the market. They are usually classified into two categories: public and property-specific. Public amenities are those that are available to everyone and include things such as schools, post offices, parks, and shopping centers. Property-specific amenities are exclusive to a specific commercial project or office.
Finding a commercial property for lease Kanata with the right amenities can be key for businesses looking to expand or relocate. For example, many businesses require reliable, high-speed Wi-Fi so employees can work remotely or access important files and documents. Other building amenities that companies look for are fitness facilities, covered parking, and convenient access to transportation.
Buying or leasing commercial space depends on several factors, including current business needs, finances, and where you want your company to be. Buying typically requires more upfront costs than leasing but offers security and stability for the long term.
Location
The location of a commercial property plays an important role when considering its suitability for lease. The right location can boost sales and lead to a successful business venture. It is important to consider the type of clientele that will visit the establishment and how easily they can access the property. In addition to the market, choosing a submarket that offers favorable supply and demand characteristics for the desired property is also necessary. Good markets have strong employment, population, demographic growth, high median incomes, and adequate and accessible transportation systems.
Lease Terms
A major consideration when deciding whether to lease or buy commercial real estate is the ability of a company to expand or contract as needed. Leasing typically provides this flexibility by allowing businesses to purchase expansion options within their lease (a right of first refusal). Rent increases can be a significant issue for tenants, so you must understand how rent escalation clauses work before signing a commercial property lease agreement. You will also need to know about tenant inducement payments, a way for lessors to give tenants incentives for leasing their space, such as rent-free months or cash payments.
Lease Agreement
A commercial lease is a legal contract between the lessor and lessee that stipulates the duties and responsibilities of each party. The terms of a commercial lease may be more complex than those of a residential lease, and the language in a contract needs to be clear and comprehensive, which can require a review by an attorney. The lease agreement should clarify the set rent price, how tenants will pay when payments are due, and any late fees that will apply. The agreement should also describe whether utilities will be included in the rent price or if the tenant will pay for them separately. The lease should include a nondisturbance clause, which protects the business if the landlord defaults on the mortgage and has to sell the property. It should also include a clause that explains how the business can break the lease.
