The world of commercial leasing can be tricky. Many businesses fall into the trap of becoming comfortable with their lease, not realising that it could pose serious limitations for them. Underestimating the importance of your commercial lease could be detrimental, while evaluating it with the help of a commercial property expert could actually add value to your business and set it up for a more stable future.
At BRM Projects, we see the following factors as central points of consideration when signing a new commercial lease or reviewing your current lease.
The state of the market
Are you informed about rentals and incentives for buildings in your area and other areas?
Sound knowledge of the market will provide you with even greater leverage and will prepare you for your next step as you will know the options available to you.
Commercial terms and incentives
Ideally, your lease should contain commercial terms that are beneficial to you as a tenant. Lease conditions such as how is my rental to be increased every year. Will my rental exceed market in a few years because of fixed increases. What will happen at the end of the lease term, what are my obligations. Other terms may include maintenance obligations and makegood requirements at lease end. An understanding of these obligations will ensure that you gain as much leverage as possible for the lifespan of your lease. You will also want to see incentives from the landlord. Perhaps they are willing to contribute towards the fitout of the space or offer you a rent free period to incentivise you to move in. Such terms and incentives are a significant part of a commercial lease and can greatly impact the future of your company within that space. Many tenants are retail tenants under the Retail Leases Act without understanding the benefits the Act has for many commercial tenants.
Where is your company heading? Understand your company’s direction and any upcoming changes it may be facing. Make sure that your lease objectives are aligned with these changes. Will I have a tenants option to renew to give maximum flexibility in the lease term.In which ways can the lease reflect or jeopardise your brand’s values?
Location will play a crucial role in the signing of a new commercial lease, as well as renewing an existing lease. As with all the above factors, your brand’s values and company direction will dictate where its workplace should be. Proximity to public transport, cafes, shops and other similar businesses could all be deciding factors in where you decide to search for a property.
Enjoy expert guidance from our BRM property professionals as you navigate your way through your lease! We specialise in property strategy and advisory services including property search and lease negotiation!
Contact us to talk about your lease and learn how we can help your business get the most out of it!
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