Imagine a situation where you are in an urgent need of office space for lease in Mississauga. You run up and down looking for cheap offers and pocket friendly deals but Lady Luck doesn’t shine on you. In frustration, you go for what seems right at the moment. You listen to both fake and genuine realtors. You then end up with a business lease you understand nothing about. Six or seven months down the line, you realize you made a bad decision and agreed into a raw deal. Fortunately for you, you can always back down on the deal. So you call it quits and start all over again. This time though, you are cautious. You learnt from the previous experience. But that’s not enough. You will still need to consider the following tips before signing any business lease.
This is one of the most important considerations one must take into account. It cuts across nearly all commercial real estate needs. In other words, you must consider your spacing needs whether you are looking for a warehouse, a go down or a show room. Understanding how your landlord has calculated unit space will go a long way to help you budget how much you should set aside for rent. Find out if the space is based on the actual square footage. Find out too if the space was accurately calculated.
One good tip is to be on the lookout for specific unit sizes. Know what you need and how much your desired office will cover in terms of space. Another trick is to go for smaller spaces. Then enquire about bigger spaces with time. The premise owner might be convinced to offer you incentives for the larger office space you are in need of.
You may not have figured this out but square footage rental rates may not reflect the actual price of leasing. What’s more, the rates that appear on listings can sometimes be misleading. Find out what you could be getting yourself into by talking to the real estate agent in charge of the business premise you intend to rent. Then while at it note that some rates may be temporarily high with three or four months of free rent offered in a bid to reduce the actual amount of rent to be paid over the duration of the lease.
Remember to find out more about the link between your office space and the rent you are paying. As already hinted, these two factors always complement each other. It is easy to think you are paying a set amount of money per square foot. A closer examination can however reveal that you could be paying for office space that does not exist, based on the square foot calculations you may have agreed on before signing the lease. All these explain why you must always be careful when it comes to negotiating on rental rates based on space.
Most landlords always add additional charges on top of base rent in the name of catering for services required to maintain the premise you intend to rent. This is sometimes referred to as cost per square foot. Agree on how much you will be paying and how often the real estate agent managing the property will be reviewing the terms and conditions of these ‘extra costs’. Then remember to be on the lookout for costs that are often inflated with marketing costs and capital improvements.
It sounds as a cliché, but it isn’t. For most, if not all retail businesses, location can break or make the business in question. With that in mind, choose the best location. You may have to pay more for areas considered as prime locations. Don’t mind it. Remember to consider as many factors as possible. Find out who the other tenants in the building are, the security situation of your desired location and other vital factors like parking.
When you are finally ready to sign the lease agreement, make sure that all verbal agreements are in black and white. You may have been lured into signing by great promises. But no matter how sweet the promises sound, they can be excluded by a single clause in the agreement if they are not put in writing. So don’t buy into cheap talk and empty promises on months of free rent, future lease renewal and free services. Have all these things in black and white.
Remember that you may have to engage an attorney before signing the lease. Be sure to go for the most competent one you know. Be sure to also engage other real estate experts to help you make sane decisions based on facts. With that in mind, talk to realtors and go an extra mile to research on the basics of business premise and office space leases.