If You Lease Buildings in Northeast Ohio, Remember These 5 Tips
Are you a business owner searching for buildings for lease in Ohio? There are many benefits to leasing a commercial property rather than purchasing one; for instance, little upfront financial risk, no long-term commitment, lower maintenance costs, and the flexibility to upgrade to a larger building if your operation expands.
That said, there are certain things you should keep in mind before committing to a commercial property. Below are our top five tips for commercial real estate tenants.
1. Know Your Must-Haves & Deal Breakers
When deciding whether or not to lease a certain building, some details just cannot be glossed over—for instance, your budget vs. the actual total cost. Your other must-haves and deal breakers will depend on your industry and unique business needs.
For example, how crucial is leasing a building in a specific neighborhood? What about onsite parking, building amenities, and proximity to highways? Deciding which factors you are willing to settle on (and which you are not) will save you time and hassle later in the process.
2. Understand Your Lease Terms
Leasing a building in Northeast Ohio is significantly more involved than renting a residential space. Commercial real estate contracts are typically not covered by Ohio laws that protect residential renters, which means you may need to give up a good deal of operational privacy or take on more property responsibilities.
There are also different types of commercial real estate leases, such as Triple Net (i.e. NNN), Gross, and Modified Gross. Each of these lease types offers varying amounts of flexibility for commercial property tenants, so it is important to understand the terms of your lease upfront before signing anything.
3. Hire a Tenant Rep Broker
Tenant rep brokers (also called tenant advisors or tenant representatives) are commercial real estate agents who help businesses find the best properties to lease. They also help their clients negotiate the most favorable lease terms.
Hiring a tenant rep broker means that you always have someone in your corner fighting for your interests. Your tenant adviser will review your real estate agreement in detail, break down complex lease terms, offer objective advice, and help save you time and money.
4. Learn the Market
What is the Northeast Ohio commercial market like right now? What are similar tenants in your local area paying, and what do their contracts look like? What is the average cost per square foot of the type of building your business is interested in leasing?
Knowing the answers to these questions will help you determine whether or not a property offers a good value for your business. It will also aid you during negotiations, since it gives you an idea of how much wiggle room you have to work with.
5. Ask for Clauses That Protect Your Rights
Many tenants looking for a commercial building to lease do not realize that they can request to add certain clauses to their lease agreement. There is no guarantee that every landlord will agree to these clauses, but it is worthwhile to have those discussions.
For instance, a sublease clause allows the tenant to sublease the space should they need to move to another property before the end of their lease period. Co-tenancy clauses enable tenants to break their lease should a major tenant that drives traffic to their business move away (for example, a big box store that brings foot traffic to your retail location).
Leasing commercial real estate is not a light decision, but with the right planning, research, and professional help you can make the best possible choice for your business.
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.