Leasing commercial property can be confusing for both the tenant and the landlord. This guide will assist you with an efficient experience and provide you with tips for making the lease work in your favor!
Determine Space Requirements/Analyze Needs
The first step for a prospective tenant is to determine his/her needs, as far as what components are necessary for their space. How large do the offices need to be? Does the reception area need an easy access to a bathroom? Once the space criteria is determined, the tenant can begin to research potential properties.
After the tenant has determined his/her space requirements, they are ready to develop a list of potential locations. As the tenant tours each property, it should be noted what is liked/disliked about each location. This will allow for the tenant to clearly remember each property, especially in the case there are a lot of prospective locations.
A Request for Proposal (RFP) should be initiated for the top three or four choices. In this document, the specific needs and considerations of the tenant should be included. It is crucial that the tenant included all significant items in the RFP, as it will serve as a basis for lease negotiations. Landlords will respond to and RFP with a proposal of their own regarding how their property can meet the tenant’s needs. With all proposals received, the tenant can now develop a Comparative Lease Analysis – a detailed look at what each building is offering, and for what price. A side-by-side comparison of specific features and pricing will assist the tenant in deciding how the properties contrast with one another.
With a list in hand of crucial property items, the tenant and landlord are ready to enter into negotiations. An attorney is usually valuable in this situation, as they can assist in working out the details of a contract. Upon agreement between the landlord and tenant, it’s time to sign the lease agreement.
Please keep in mind that these are only a few tips, as a qualified real estate agent and/or attorney will be of further assistance throughout your property search and lease agreement signing.