How to Rent a Commercial Space

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Ready to grow your business by getting a new commercial space? Well, much as it sounds exciting it also can be overwhelming. Whether it’s your first time renting a commercial space or you have experience, still it needs a good deal of commitment to do that properly. And surely you want the perfect options for your business, right?

Here in this article, we are going to discuss the process of renting a commercial space. You will get all from the start to finish covered here. Furthermore, you will get some practical advice that we believe will help you navigate better on the mission. Let’s begin!

Finding a commercial space

This is the very first step toward getting a rented commercial space for your business. Although it seems like a cakewalk, it’s not as easy as you think. Finding the right commercial space is hard because everyone wants the best options and they are taken as soon as available. Also, it has a lot to do with your business type. You have to find a space where your business will get advantages. That should be decided by the space type, location, cost, etc.

There are a couple of ways to find a commercial space. here are the most popular ones:

Getting help from a CRE brokerage

This is the easiest and almost effortless way of finding commercial space. Commercial real estate or CRE brokerages are dedicated to renting and selling offices, retail, etc. You can hire one to find a suitable commercial space for your business. They will also help you negotiate the rental rates.

Internet

The Internet is another amazing resource you can utilize. There are a lot of websites where landlords list their commercial space for the tenants to find. There will be loads of advertisements like commercial space for rent in Dhaka. All you have to do is just search and choose one.

Visiting the area

When you want your office to be in a specific area, you can just visit the location and look for available commercial spaces in that area. It is also easier to choose when you visit the place yourself because you can see the place in front of you instead of looking at pictures or hearing from someone. Also, you will be able to see the places not listed on the internet.

Things to consider while choosing a space

Now, after finishing the search you probably have a couple of options to choose from. But how do you choose the right one? There are some key points to determine the best choice for your business. Here are those:

Near you customers

It would be a huge advantage if you establish your office in a place where your potential clients will be. So that you can attract new customers and also existing clients can reach you promptly. When you are choosing a space, make sure it is near the place where your customers are.

Near competitors

It probably sounds weird but having your business near your competitors really helps business. Because you will be in an area where there are customers who are looking for the products or services you are providing.

Near major highways or public transport

Opening a store in a busy area will allow you to get the attention of more people. This is because people are more likely to walk into an open store than a closed one. In addition, the foot traffic in these areas will be higher and people are more likely to contact your company. So, you need office space near major roads or public transport routes.

How to rent the commercial space

Review the lease

Once you have chosen space and contacted the landlord, now it is time to review the lease. If you are not quite familiar with the legal terminology or lease, then it is better to consult an attorney or hire a real estate agent. Every landlord puts some conditions when you lease space from them. You have to make sure you can meet those conditions before signing the lease.

There are different kinds of leases for commercial spaces. Each time comes with a different sort of process or conditions. These conditions will affect your expenses too. Therefore it is important to understand the lease type.

1. Single Net lease: The tenant covers the property’s other costs in addition to the base rent.

2. Double Net Lease: The base rent, building insurance, and related property taxes are all covered by the tenant. Maintenance, utilities, and other relevant expenses are covered by the landlord.

3. Triple Net Lease: The tenant pays the base rent, property taxes, utilities, insurance, and maintenance.

4. Full-Service Gross Lease: The tenants pay a fixed amount monthly or early. The rest of the operation and maintenance costs are taken care of by the landlord.

5. Modified Gross Lease: Tenants pay a fixed amount but if the operating expenses increase beyond the amount written in the lease, the tenant has to pay a portion of that increment.

6. Percentage Lease: The tenant pays base rent and in addition, a percentage of the business’s gross profit. This type of deal can be often seen in restaurants and retailers.

Negotiate the lease

After reviewing the place and the lease, now contact the landlord and try to negotiate the rental cost. The price the landlord asked for is not always fixed. Negotiate the lease for a better price and if you think the price is okay, sign the lease. Now you have got your business a new office!

Conclusion

Renting commercial space is not like buying a drink. Because the item and the location are never the same when you are leasing an office space for your business. It starts from searching for space and finishes by signing the lease, having a handful of in-between steps. We tried to discuss all of the steps by breaking them into chunks. We hope that was helpful for you.

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