Before you begin searching for a great Austin warehouse space for rent for your small company, you will need to get informed about the commercial real estate leasing process. Being prepared will prevent you from making rapid decisions and costly mistakes thatyou will regret later on. The following are some insider suggestions to help make an informed decision when letting a commercial real estate your company
Initiate the process of searching for commercial space at least 6-12 months before your existing lease terminates or until your ideal move-in-date. Finding the perfect space and negotiating the deal will require 1-2 months depending upon the size area and current market conditions. In most cases the spaces you like will require some sort of improvements which the time needed will depend on the scope of work.
completely examine your company’s present and future needs. Consult with the different department heads for input as well as some key employees.
Get acquainted with allthe commercial space terms and definitions. Different landlords say and quote things differently. If you are in doubt about what they mean don’t be afraid to ask them to provide more information.
If you are not familiar with the commercial property leasing process or the present market conditions then consider engaging the assistance of a tenant agent. Their services don’t cost you anything since building owners pay all the leasing fees. The landlord rep will have an expert listing agent helping them so it would be a good idea for you to have one also.
Physically see all the properties that meet your requirements 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 reps a lot of questions regarding who owns the property, property amenities, required lease term length, how much the landlord is prepared to give in tenant improvement allowances, etc..
Do not settle for the first commercial space you think is suitable for your requirements: continue looking until you have at least 2 to 3 other options. These additional options will work to your benefit since you will know what to expect throughout 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 if the negotiations for your first choice fall through.
Send out proposals to your top three to five options. These aren’t legally binding. You don’t ever want to have a landlord agent’s verbal word. Everything needs to be in writing.
To help you decide what property is most suitable for your business, prepare a spreadsheet to do an apples to apples comparison of every property. Some of the things you need to put into consideration include the dimensions of this distance, the asking foundation rental rates, the necessary lease duration, and the incremental expenses (taxes, insurance, maintenance, etc). It is also possible to take note about the advantages and disadvantages of each property. If you are budget conscious then you can quickly narrow down the list by simply calculating the monthly base rents for each property then removing those that are way over your budget. The monthly base rent is calculated by multiplying the industrial space square feet by the asking base rate plus any operating expenditures then dividing by 12.
If any of the commercial property require tenant improvements then it’s important that you figure out what changes you want on each and get prelim construction bids. This way if the building owner is offering a finish out allowance you will learn how much out of pocket you will have to pay over and beyond what the building owner is prepared to give.
Carefully analyze and compare the terms of each proposal. Consider whether it makes sense to return to every landlord to negotiate additional concessions. Be certain you fully understand the total expenses you are expected to cover. Do not get emotionally attached to a specific property until the negotiations are over. Emotional attachment might result in you signing a contract thatyour business can’t live up to.
After negotiations are finalized and you have made your selection now it’s time to have the landlord provide you the first draft of this commercial lease contract.
Now it’s time to review the commercial lease contract. It would be advisable for you to hire an attorney to review the lease. For those who have a tenant representative then they can review the lease with you as well. Commercial lease language can be negotiated. If you don’t like certain lease items or would like to propose new language now is the time to do so.
When the end of lease contract negotiations has finished the building owner will supply you a copy of the lease to sign.
There are several more things to think about when leasing commercial property however these suggestions will help get you going. If you are a new business leasing space for the first time or an existing business who has only rented one or 2 spaces then consider getting help from a tenant rep. Their services don’t cost you anything and you will save a lot of money and time.