Commercial Real Estate Property: What to Ask Before You Sign
When beginning to establish your business, finding the best commercial real estate property is going to be one of your largest investments. It is also the most important to the success of your business. Commercial real estate, including industrial and commcercial property for sale in Salem NH, will have a wide range of effects on your business. These could range from amenities your company will enjoy to the businesses and potential customers that will be aware of you services. It can even include the potential employees that will apply for openings.
With so much riding on making the right decision, care should be taken before signing a contract with a particular commercial property. An unscrupulous commercial real estate property dealer could lock you into a bad contract and severely limit the growth potential and payoff of your burgeoning business. To make the best deal possible when leasing industrial space, these are some of the questions that should be taken into account:
What will my long term plan mean for my office space?
Renewal options are usually glossed over when a company signs an office space leasing agreement. However, DO NOT SIMPLY SKIM YOUR RENEWAL OPTIONS. Build a basic long term plan - complete with how much you realistically expect to grow in your tenure at the commercial real estate property. If you find yourself able to upgrade easily, you can then be looser on your renewal agreement. Otherwise, make sure that the fixed market value of new rates is reviewed so that you do not pay too much your second time around.
You should also consider notice periods and holdover rent issues. Remember, your business’ growth, and day-to-day, will be heavily impacted by the space that you occupy. Should you make the wrong decision, you could be hamstringing your operation. Shop around a bit, negotiate well, and you’ll have an office space conducive to your growth and success.
What is special about my business?
Each business has specific characteristics that are going to set it apart. These will dictate the terms of your lease agreement, and the kind of commercial office property that you should pursue. Do you foresee hosting many clients and business visits? Make sure that your office space is more accessible within the building. Will your employees be active and require space to move around? Maybe avoid a quiet or small office building. Focus on the presumed day-to-day and plan from there to ensure a good relationship with neighbors and the building manager
What will the location contribute to my business?
If you have the opportunity for a prime office space for lease, don’t pass it up easily. Location means the most in real estate; but for commercial real estate property, location means that much more. Where your business resides will dictate the potential employees that apply for you, the amenities that those employees will be able to enjoy, and even the people and other businesses that will be aware of your products and services. Don’t let a building manager take advantage of you, but hold off on walking away from a prime location until you negotiate a little longer.