Signing a commercial lease is likely one of the biggest steps for any business owner. Whether you’re looking for a retail space, or a professional location to run your business, a real estate lease can make or break your entire company.
If you’ve never negotiated a commercial real estate lease, the process can be extremely complicated and overwhelming. Below are a few tips for first time lessees to best handle this incredibly important business transaction.
When determining whether you’re ready for a commercial lease, financial preparedness isn’t the only factor to consider. Even if you’ve found what looks to be the perfect location for your business, it’s important to read the fine print. Business owners should know the differences among classes of commercial property (usually A, B and C) and what is called “usable” and “rentable” space. “Usable” space is the area that you physically occupy for your business, while you may also be charged shared costs for common areas within the building, which can be referred to as “rentable” space.
Additional items that may be incorporated into the lease agreement include real estate taxes, insurance, utilities and maintenance and operating costs of the building. These additional fees can result in significantly more expenses than a business owner may realize.
If you’re a business owner, you likely enjoy doing most things yourself. While this may be ok for some situations, negotiating a commercial lease can be complicated and the last thing you want is to be taken advantage of by someone better versed in commercial real estate. By hiring an experienced commercial real estate broker, you’ll likely avoid some of the easy to make mistakes, and be able to negotiate superior terms for your commercial lease. An experienced broker acts more like a consultant that should help the business owner understand how the real estate component to their business will impact the bottom line for the company’s performance. Specific areas of concern would include location, internal layout and design, operating costs and long term viability of the space as it relates to the growth plan for the business, among others.
Business owners may be so focused on the beauty of a certain office space that they miss out on extremely important nuances within a commercial lease. By working with a neutral third party, you can ensure that you’re properly protected.
While you may not be planning to stay in the same office space for the next 30 years, it’s important to think about the long-term effects your retail space or office building will have on your company’s image.
With a commercial lease, you’re investing in your company’s brand and you want it to reflect highly in terms of how you’re trying to present your image to your clients or customers.
At Morris Southeast Group we’ve been helping small business owners in South Florida find affordable and attractive office space for decades. In fact, we offer our tenant representation services where we walk our clients through the entire commercial leasing process to ensure their needs are met and that we’re able to negotiate the most favorable lease terms possible. To learn more about our tenant representation service, contact our team today at 954-474-1776 x 303 or Principal Ken Morris’ cell phone (954) 240-4400.
Broward County, FL; April 18, 2016 – President Ken Morris, SIOR, of Morris Southeast Group announced three recently completed lease transactions that he managed in South Florida.
Morris represented 4Media Central in its lease for 11,890 rentable square feet (RSF) at 350 Jim Moran Blvd. in Deerfield Beach, FL. The deal is for two years. Morris also represented the landlord, MMB Commercial Property Co., Inc.
Morris also represented KW Property Management in a five-year lease for 2,445 rentable square feet RSF at 13794 NW 4th Street North Pine in Sunrise, FL. Morris represented, Sawgrass Business Plaza, LLC, the landlord.
Morris represented Pinnacle Family Service-Broward for a 2,195 rentable square feet (RSF) lease located at 351 136th Avenue, Davie, FL. S-H Financial, LLC, the landlord, represented itself.
For more than 35 years, Morris Southeast Group has been recognized as one of South Florida’s leading providers of commercial real estate services. Located in Weston, FL, Morris Southeast Group is a full-service firm specializing in owner and tenant representation, corporate services, and investment sales in the office, industrial, and retail sectors throughout Miami-Dade, Broward, and Palm Beach Counties.
For more information contact President Ken Morris at (954) 474-1776 or visit www.morrissegroup.com.