6 Things to Consider When Renting A Commercial Property
Renting a commercial property takes patience and thought. The real estate business in the Fort Myers and Cape Coral areas is ever-growing. Missing out on critical factors can put you into a bigger rut that would have been avoidable earlier in the process. Keep these six factors in mind before renting a commercial property.
Your Business' Future with Commercial Real Estate
The most crucial thing to get out of the way is choosing a property where you can conduct business legally. There are always up-to-date zoning laws to be aware of and keep abreast of. The zoning laws regulate and limit activity in specific districts for commercial, residential, agricultural, and recreational use.
Commercial zoning regulates commercial structures that consider building safety, access requirements, and industrial facilities, among other things. Design essentials, building paint and layouts, lot coverage, floor area ratio, parking ratio, exits, and fire escapes are also essential elements that are included.
You can contact a local business attorney to help you chart your map to victory.
Some things to consider with commercial zoning:
- Know the previous non-conforming practice
- Look into whether the approval depends on a conditional use
- Research any variance of a prior tenant
The more you understand commercial zoning, the more you can avoid risks and boost potential returns.
2. Finding a Broker
Engage with a commercial real estate broker in Fort Myers or Cape Coral that fits your particular market. Get the guidance and help needed from those with more experience and wisdom to find options that match your criteria and can advise you through lease negotiations. Consider consulting before signing a commercial lease, where an attorney can advise you and consolidate the lease terms to your agreement.
There are so many factors that go into finding the correct location. First and foremost, you want to see how accessible the area is. If it's difficult to access, that is one of the top things that detract people from streaming in. What is the transportation around the area to get to your location? If parking is difficult, it is an easy choice for a customer to get on their way and find another business with less hassle.
How close are your competitors around that location? If people are looking for a convenient location and have multiple options for the same type of business, what is the likelihood of choosing yours over others?
Is the area safe? Does the area pose a threat to outsiders who are visiting? Is it difficult for people to be around that area in general? But, of course, people don't put their safety at risk to buy everyday commercial things.
Are there other businesses or nearby attractions that would naturally attract specific customers to come by even if they didn't initially plan to? For example, if you own a store located near a tutoring center, you might get parents dropping in to fill their spare time as they wait for their children. Therefore, to get the right property, you want to consider the kinds of customers who come into that area and their respective demographics.
4. Lease Terms
There are plenty more restrictions for business contracts compared to others. However, the contracts have the flexibility to be catered to the tenant's specific needs. Leases are not standard. Business tenants are less protected than the residential crowd. There has to be a clear expectation of the condition and state of the building or property by the end of the lease. Ensure you are not held responsible for repairs and natural wear and tear, nor are you responsible for renovations to prepare the property to put on the market for the next tenant. The maintenance and renovations are usually for the property owners to take care of.
What use does the structure provide for the kind of business you provide? You can assess the atmosphere, the facility, and the amenities that the location offers. Know who is responsible for the building maintenance. Know the care that is needed (if any). Is the property capable of containing and maintaining the features needed to run your business?
The agreement concerning the rent payment is essential. Is there a need for renovations and a grace period before rent payment is implemented? How long would you continue to pay rent at the end of the lease? When alterations are made to restore or fix the property after the lease time, how far into the future of the lease time would that take? Are there additional charges that would be made or could potentially be made (i.e., property insurance), and on what terms? Keep in mind that lease prices usually incline upon renewal.
On top of the monthly lease, there are additional charges for maintaining common areas like hallways, parking lots, elevators, etc. It is vital to have a clearly written lease, including the monthly rental fee and any additional charges, so no one is surprised.
Considering the complex commercial zoning laws in the Fort Myers and Cape Coral area, it will save you time and money to use an experienced broker who can guide you through the process.
As a trusted Coldwell Banker Realtor, Alec Salamah can help you:
- Find and research ideal locations
- Negotiate lease terms
- Check out the structure of the facility
- Be clear on the rent expectations
- Define any additional charges
Take your time and think your options through. And remember, we will do all the negotiating in the commercial real estate world, so you don’t have to.
With all the different factors to consider, negotiating to get everything you want in a commercial property is unavoidable. You never want to settle for less. Ultimately, your decision on commercial real estate in the Fort Myers and Cape Coral area will affect you and your business's future. Let the professionals at Alec Salameh help you through the murky commercial property waters!