Leasing your first commercial property may feel like a difficult task. After all, it is not exactly the same as working with residential real estate. It is easy to feel overwhelmed by the sheer number of laws and regulations surrounding commercial real estate.
Before you dive in, you should familiarize yourself with potential mistakes that others have made. This way, you can avoid them and make your own experience that much smoother.
Stay within budget
Forbes looks at mistakes to avoid when leasing your first commercial property. The first involves considering your budget and the function of the space. First, always stay in your budget range. Do not prioritize a glitzy space outside of your range just for the glam factor. After all, customers will continue using your space if what you offer is good. The location is a second place matter.
Next, be ready to pay upfront for up to a year. You do not know how long it will take to lease out your space. You should always hope for the best and prepare for the worst. Be ready to shell out money with no return at first. Understand that businesses do not often make profit for the first few years, too.
Be clear with expectations
Be open with your intended use and expectations, too. Make all responsibilities and duties clear from the start. Having a transparent commercial lease agreement helps create trust between all parties. You can also avoid conflict and dispute when unexpected situations arise if you have expectations that you outline clearly.
You may also want to contact a legal professional. They can help guide you through this potentially complex process.