Before you start looking for an excellent Austin warehouse space for rent for your company, you must to get informed about the commercial real estate leasing procedure. Being ready should keep you from making rapid decisions and costly mistakes thatyou will end up regretting later on. The following are some insider suggestions to help make an informed decision when renting a commercial property your business
Start the process of hunting for commercial real estate for lease at least 6-12 months before your current lease terminates or until your ideal move-in-date. Finding the perfect space and negotiating the deal will take 1-2 months depending on the size space and current market conditions. Typically the spaces you like will require some sort of improvements that the time required will depend on the scope of work.
completely research your company’s current and future needs. Consult with the various department heads for input in addition to some key employees.
Get familiar with allthe commercial real estate terms and definitions. Various landlords say and quote things otherwise. If you’re in doubt about what they mean do not be afraid to ask them to provide more info.
If you’re not familiar with the commercial property leasing process or the current market conditions then consider engaging the assistance of a tenant agent. Their services do not cost anything since building owners pay all of the rental commissions. The landlord rep will have an knowledgable listing agent helping them so it would be a good idea for you to have one too.
Physically visit all of the spaces that meet your needs so thatyou can make a short list. Bear in mind that the layouts can be reconfigured so don’t get stuck on that. Ask the landlord representatives a lot of questions about the ownership, property amenities, required lease duration, how much the landlord is prepared to give in tenant construction allowances, etc..
Don’t settle for the first commercial properties you believe is suitable for your needs: continue looking until you have at least two to 3 alternative options. These additional options will work to your advantage since you will know what to expect during the lease negotiations and you will gain more leverage with multiple building owners competing for your tenancy. They also give you something to fall back to whether the discussions for your first choice go silent.
Send out proposals to your top three to five options. These aren’t legally binding. You don’t ever need to take a landlord agent’s verbal word. Everything should be in writing.
To help you decide what property is best suited for your business, prepare a spreadsheet to do an apples to apples comparison of each property. Some of the things you need to consider include the dimensions of the distance, the asking base rental rates, the necessary lease duration, and the incremental expenses (taxes, insurance, maintenance, etc). You can also take note about the pros and cons of each property. If you’re budget conscious then you can quickly narrow down the list by calculating the monthly base rents for each property then eliminating those which are way over your budget. The monthly base rent is calculated by multiplying the commercial space square feet from the asking base rate and any operating expenditures then dividing by 12.
If any of the commercial spaces require tenant improvements then it’s important that you figure out what improvements you want on each and get preliminary bids. This way if the landlord is offering a tenant improvement allowance you will learn how much out of pocket you will have to pay over and beyond what the landlord is prepared to give.
Carefully analyze and compare the terms of each proposal. Consider whether it is logical to go back to each landlord to negotiate extra concessions. Be certain you completely understand the total expenses you’re expected to cover. Don’t get emotionally attached to a specific property until the discussions are over. Emotional attachment might lead to you signing a contract thatyour business can’t live up to.
After discussions are finalized and you have made your selection now it is time to have the landlord provide you the first draft of the commercial rental contract.
Now it is time to review the commercial rental contract. It would be wise for you to hire an attorney to review the lease. If you have a tenant agent then they could review the lease with you also. Commercial lease language could be negotiated. If you do not like particular lease items or want to propose new language today is the time to do so.
When the end of rental contract negotiations has finished the landlord will supply you a draft of the lease to review and sign.
There are several more things to consider when renting commercial space however these suggestions will help get you going. If you’re a new business renting commercial space for the first time or an current business who has just leased one or two spaces then consider getting help from a tenant rep. Their services don’t cost you anything and you will save a lot of time and money.