The Ins and Outs of Commercial Leasing
There are a few important points to consider when entering into a commercial lease. Three of those are the major questions that you need to ask before signing a lease.
1. Ask what type of lease is being offered. If it is a “net” or “Gross” lease.
If the lease is “net” then that means that you as the tenant will have at least one additional charge placed over and beyond the stated rent. If the lease is “Gross” then that means that you as the tenant will have no cost over the stated rent and any additional charges are the landlords responsibility. Please don’t expect to find a Gross lease in the Market today, they are very rare!
2.Are the Lease Terms Negotiable?
If the lease is negotiable then all terms should be negotiable so evaluate each one of the leases terms and how it will impact you.
3.Does the Lease Require Insurance Coverage from me?
Please be sure to ask this as not all leases include all the insurance for some points of the space and it may be required of you to provide this.
There are also some ways to avoid common mistakes in leasing a property. Here are the chosen top three.
Searches
Make sure to carry out searches against the property
Stops on the Rent for Damage
If the place is unusable due to damage, remember that you can not stop paying the rent to look for somewhere else. You are still responsible for the rent of that space.
Any Purpose Leases are Best
If the lease allows you to use the premises for any purpose, it may result in a higher rent later.
We hope that this has helped you become more informed on commercial leasing in Houston.
We wish you success in the search for a new office space for your business or retail venture. It’s a tough economy, so due diligence is required when you’re making a big step like entering a commercial lease contract..