You have decided that you need to find office, industrial or retail space. There are five crucial steps you need to take whatever type of space you need, whether it's brand new space or whether you are thinking about moving from existing space.
Step 1. You need to determine the size of the space you are going to need now and whether you may need more space in the future. A knowledgeable commercial tenant representative may be able to help you in that process, or you may want to engage a space planner. You need to determine your budget, which may affect the location, image and quality of your property. You may want to discuss your ideas with your financial planner, CPA and attorney.
Step 2. Choose your commercial tenant representative so he or she can advise you on the current market, to search the market for additional properties that may become available, and to inspect the properties based on your criteria to narrow down the alternatives. This way, you won't have to visit every property on the market.
Visit three-to-five of the best alternatives presented to you. Choose two, and have your commercial tenant representative prepare a letter of intent to lease those properties on terms acceptable to you. The letter prepared by a knowledgeable commercial tenant representative will make it clear that it is not binding until an actual lease is signed.
Step 3. Review the responses to your letters of intent, prepare a financial analysis of the alternatives, and determine which property, coupled with the response, most closely matches your needs and wants. Then it is time to prepare and present your counter-offer. You may have to renegotiate or choose the alternate property.
Step 4. When the basic lease terms have been negotiated, and are mutually acceptable, the landlord will present you with a lease probably containing more than 100 paragraphs. You need help from your commercial tenant representative to review the business terms, and a knowledgeable real estate attorney to review the legal terms of the lease. Once all the lease terms are agreed you are ready for the 5 fifth step!
Step 5. Sign the lease, pay your deposit, commence tenant improvements and supervise any landlord work done in accordance with your lease.
Congratulations!
Step 1. You need to determine the size of the space you are going to need now and whether you may need more space in the future. A knowledgeable commercial tenant representative may be able to help you in that process, or you may want to engage a space planner. You need to determine your budget, which may affect the location, image and quality of your property. You may want to discuss your ideas with your financial planner, CPA and attorney.
Step 2. Choose your commercial tenant representative so he or she can advise you on the current market, to search the market for additional properties that may become available, and to inspect the properties based on your criteria to narrow down the alternatives. This way, you won't have to visit every property on the market.
Visit three-to-five of the best alternatives presented to you. Choose two, and have your commercial tenant representative prepare a letter of intent to lease those properties on terms acceptable to you. The letter prepared by a knowledgeable commercial tenant representative will make it clear that it is not binding until an actual lease is signed.
Step 3. Review the responses to your letters of intent, prepare a financial analysis of the alternatives, and determine which property, coupled with the response, most closely matches your needs and wants. Then it is time to prepare and present your counter-offer. You may have to renegotiate or choose the alternate property.
Step 4. When the basic lease terms have been negotiated, and are mutually acceptable, the landlord will present you with a lease probably containing more than 100 paragraphs. You need help from your commercial tenant representative to review the business terms, and a knowledgeable real estate attorney to review the legal terms of the lease. Once all the lease terms are agreed you are ready for the 5 fifth step!
Step 5. Sign the lease, pay your deposit, commence tenant improvements and supervise any landlord work done in accordance with your lease.
Congratulations!