Small-to-medium sized businesses (SMBs) make far too many mistakes when renting or leasing a commercial space. In this post, we’ll outline several key mistakes SMBs make. Rental and lease payments are one of the top expenses incurred by most SMBs. Making a mistake early-on in this process can be devasting to a businesses bottom line. Here are a few tips for any SMB looking to rent or lease a commercial space.
Do Your Homework
The more you know about the basic fundamentals of renting or leasing a commercial space, the better you’ll understand the process, the players involved, and how to avoid common pitfalls.
Consider a Tenant Broker
If you’re signing a lease for a space larger than 1500 square feet, you’ll assuredly benefit from the expertise of a good Southern California tenant broker to navigate you through what can often be complex lease terms. Having someone knowledgeable in commercial real estate is the best way to ensure you’re making a truly informed decision regarding your business space needs.
There are just too many variables at play to run the risk of going at it alone. It’s good to have someone representing your best interests. Someone that will negotiate favorable lease terms for you. Someone that can ensure you’re not hit with the hidden fees often found within in a commercial real estate lease.
Avoid a Rushed Decision or Acting on Impulse
Much like we’re told to never go to the grocery store hungry, never look for an office space or retail location desperate and in a rush. Impulse decisions can be a business owner’s worst enemy. Especially when it comes to finding the right spot for your operations.
This means don’t procrastinate when it comes to finding your space. You should ideally begin looking for a commercial space no later than six months before your target move-in date so you have time to get a good lay of the land, tour different spaces, and gauge the market.
Don’t Be Pressured Into an On The Spot Decision
No matter how much a landlord or leasing agent is wooing you on your walk through tour, this isn’t a decision that should be made on the spot. You’re making a very critical decision when choosing an office or retail space. Everything from the actual space itself to the building and its location must suit not only your immediate needs but also the long-term needs of both your workers and customers. This space is where over half of your and your employees’ waking hours will be spent. This space will be a prospective customer or client’s first impression of you or your brand.
A building owner or leasing agent wants nothing more than for you to view available space listings, which often have widely inaccurate property descriptions and info, go directly to the space, and present them with an opportunity to convince you to sign into a lease TODAY to be locked into some amazing deal they say won’t be there tomorrow. While they’ll want to close you right then and there, you’re making a HUGE decision and therefore need some time to think things through before signing onto any dotted line.