So, you want to lease commercial property in the Phoenix Metropolitan Area. With an influx of available spaces throughout the Valley, it is possible that you could have a few options for your next office location. But, while it may seem that the ball is in your court when it comes to negotiating your lease, it is still very important to pay close attention to how you approach such a transaction.
The first thing you need to do is connect with a professional commercial real estate broker to help you lease commercial property for your business. Our team at the Menlo Group has years of experience, and we can help you do your homework. For instance, we can help you research the average cost of the type of commercial space that you want to lease as well as provide you with historical data for the area.
We can also work with you to determine your business needs. By asking the right questions, we’ll help you create a “nice to have vs. need to have” checklist that includes such things as desired space, utilities, infrastructure, parking, storage, and accessibility.
When you want to lease commercial property, there are other things to consider, as well. Here is a list of some things you need to start thinking about:
- Consulting an attorney. Leasing can be tricky business with lots of legal jargon. A lawyer specializing in commercial real estate can explain terms and offer advice while you’re in the negotiation process.
- Asking what the total cost covers. It is easy to think that you can afford to lease commercial property based on cost per square footage. But there can be (and usually are) other costs, as well, including common area maintenance, trash collections, repairs, utilities, property taxes, and insurance. Depending on the terms, you may be expected to pay some or all of these costs directly or to the landlord. Another option would be to have them built into your rent.
- Understanding zoning and laws. It is important to know what is permitted and what regulations or laws exist for the property that could potentially affect your business.
- Discussing improvements. If you plan on a “build out” (remodel of the property), you’ll want to know what improvements can be made, who will pay for them, who will oversee the work, and if you’re expected to return the space to its original state should you decide to move.
- Outlining your subleasing options. In the event that you have to move unexpectedly, it may be worth getting the rights to sublease part or all of your space. This term protects you from breaking the lease and helps to cover costs if the space you’re leasing turns out to be more than you end up needing.
- Forecasting timing. Typically, you can negotiate better terms when signing a longer lease. However, if your business grows faster than you anticipated, and you need to move before the lease is up, a shorter lease with options to renew may be the way to go.
- Thinking out of the box. In today’s economy, it can’t hurt to ask for any extras that you may want. You never know, landlords might be willing to throw in your requests to seal a deal.
- Putting everything in writing. You will want to make a list of all your questions, concerns, etc. You don’t want to forget anything, and you don’t want to negotiate based on a verbal offer. Getting the terms in writing and having your attorney review them is the best way to get what you want when you lease commercial property.