You’re ready to take your business to the next level. This means renting out professional commercial space in a retail, medical or office building. It’s an exciting time. But it’s also a time that requires research. You want to make sure, especially if you’ve never searched for commercial space for rent in Arizona before, that you secure a lease that works well for your business.
What To Consider
Rent: There are several key components of a commercial lease that you’ll need to negotiate. The first, and perhaps most important, is your monthly rent. Before signing a lease, make sure that you can afford this rent. Moving to a new office or retail space won’t help your business grow if the rent is too high. Taking on a rent burden that you can’t afford, in fact, will do the opposite: It will prevent your business from succeeding.
Duration of lease: Next, make sure that the length of your lease as it is spelled out in your contract is also a good fit for your business. If this is your first commercial lease, you may not want to sign a lease for five or 10 years. Such a long-term lease doesn’t leave you with much flexibility. Say your business grows more rapidly than you planned. You might need a bigger space. If you have a shorter-term lease — say one or two years — it might be easier to move to a new space that provides a better fit for your growing company.
Your contract will spell out when your lease starts and ends. It will also list your options for renewing the lease when your current one expires. Make sure to study these terms carefully to determine the best lease options for your business.
Type of lease: You’ll need to determine, too, whether you are taking out a gross or a net lease. In a gross lease, your rent will cover the costs of such items as insurance, maintenance and property taxes. In a net lease, your rent will not. Your lease contract will also spell out who will handle repairs and regular maintenance on your facility and who will pay for any future improvements to your space. Pay close attention, too, to any language concerning your security deposit. You want to know exactly how large of a security deposit you need to provide and what requirements you need to meet to make sure that these funds are returned when your lease expires.
There is a lot to consider when taking out a commercial lease for the first time. At Menlo Commercial Real Estate, we can help when you are looking for commercial space for rent. Our team has the expertise and market knowledge to make sure that your first time renting commercial space is a successful one.