If you are considering leasing a building for your business you will want to know about the property and what to expect when negotiating your lease. Depending on the type of business you have, it may be a good idea to hire an architect to measure your space and determine what you will need for your office needs. You will also need to do your own research to find out if the building you are considering is a good fit.
The biggest question you will likely have is, “How much should I pay?” There are a number of factors to consider before you make your decision. Rent will depend on the area you are considering and how long you will be in the space. It is a good idea to keep a monthly budget in mind to limit your search to spaces that are within your budget. This will also ensure you are getting the most for your buck.
When calculating what you will have to pay, it is wise to include your security deposit. This will hold your space until you have finalized the paperwork. A good place to start is LoopNet, a site that offers a commercial property directory. In addition to the usual suspects, you may also want to check out coworking spaces. These are trendy and can be ideal for a young entrepreneur. They offer a dedicated desk, but you can also work from home, in a shared environment.
A good starting point for your business lease is to understand the industry standard. For instance, most leases have a standard list of features that you are expected to agree to, such as a janitor or security guard. Also, be sure to look for a property that has a building owners and managers association. By joining one of these groups, you can compare properties and speak with other tenants.
When looking for a suitable location for your business, it is important to research the property, the neighborhood and the local zoning laws. Your best bet is to choose a location with a high volume of foot traffic, which will help you get noticed. While you’re at it, you might as well consider the environmental aspects of your future location.
The Consumer Price Index (CPI) measures the cost of goods and services, such as food, clothing and recreation. It is not a great indicator of the cost of commercial rent. However, you can use a formula that links rent increases to this index to calculate your average monthly cost. Depending on your industry, this can give you a good idea of what your cost of living will be.
For many small businesses, it is more affordable to rent a space than it is to own a building of your own. While it is not uncommon to see successful companies move from location to location, it is more common to see them stay put. As such, it is worth the time to make sure you are signing a lease that will serve you well for years to come.