How To Locate & Rent Warehouse Real Estate

Before you begin looking for a great good Sonoma wineries for your small business, you should to get informed about the commercial property leasing process. Being ready will keep you from making rapid decisions and costly mistakes thatyou will regret in the future. Below are some insider suggestions to help make an informed decision when leasing a commercial space your company

Initiate the process of searching commercial space at least 6-12 months before your current lease expires or until your perfect move-in-date. Finding the right space and negotiating the deal will take 1-2 months depending upon the size space and current market conditions. In most cases the spaces you like will need some sort of improvements that the time required will depend on the scope of work.

Thoroughly examine your company’s present and future needs. Consult with the various department heads for input as well as some key employees.

Get familiar with allthe commercial space terms and meanings. Various landlords state and quote things otherwise. If you’re in doubt about what they mean don’t be afraid to ask them to get more info.

If you’re not knowledgeable about the commercial real estate leasing process or the present market conditions then consider engaging the help of a tenant rep. Their services don’t cost you anything because landlords compensate all the leasing commissions. The landlord rep will have an knowledgable listing agent representing them so it would be a great idea for you to have one also.

Physically tour all the spaces that meet your requirements so thatyou can make a brief list. Bear in mind that the designs can be reconfigured so don’t get stuck on that. Ask the landlord reps a lot of questions regarding the ownership, property amenities, required lease term length, how much the landlord is prepared to give in tenant improvement allowances, etc..

Do not settle for the first commercial space you believe is acceptable for your requirements: continue looking until you have at least 2 to 3 other options. These additional options will work to your benefit because you will know what to expect during the lease negotiations and you will gain more leverage with multiple landlords competing for your company. They also give you something to fall back to if the negotiations for your first choice fall through.

Send out proposals to your top three to five options. These aren’t legally binding. You don’t ever want to take a landlord representative’s verbal word. Everything needs to be in writing.

To help you decide what property is best suited for your company, prepare a spreadsheet to do an apples to apples comparison of every property. Some of the things you need to put into consideration include the size of the space, the inquiring base rental rates, the necessary lease duration, and the incremental costs (taxes, insurance, maintenance, etc). You can also take note about the advantages and disadvantages of each property. If you’re budget conscious then you can quickly narrow down the list by simply calculating the monthly base rents for each property then removing those which are way over your budget. The monthly base rent is calculated by multiplying the commercial space square feet from the asking base rate plus any operating expenditures then dividing by 12.

If some of the commercial spaces need tenant improvements then it is important that you determine what improvements you want on each and get preliminary bids. This way if the landlord is offering a tenant improvement allowance you will learn how much out of pocket you will have to pay over and beyond what the landlord is prepared to give.

Carefully examine and compare the terms of each proposal. Consider whether it is logical to go back to every landlord to negotiate extra concessions. Make certain you completely understand the total expenses you’re expected to cover. Do not get emotionally attached to a certain property until the negotiations are over. Emotional attachment might lead to you signing a contract thatyour business cannot live up to.

After negotiations are finalized and you’ve made your selection now it is time to have the landlord offer you the first draft of the commercial rental contract.

Now it is time to review the commercial rental contract. It would be wise for you to hire an attorney to review the lease. For those who have a tenant representative then they could review the lease with you also. Industrial lease language could be negotiated. If you don’t like certain lease items or want to propose new language today is the time to do so.

When the end of rental contract negotiations has ended the building owner will supply you a copy of the lease to review and sign.

There are several more things to consider when leasing commercial real estate however these tips will help get you started. If you’re a new company leasing commercial property for the first time or an current company who has just leased 1 or 2 spaces then consider getting help from a tenant rep. Their services don’t cost you anything and you will save a great deal of money and time.