![]() Be aware of all the costs before you commit - understand your responsibilities and ensure any wording around additional charges is crystal clear. So, negotiate that the cleaning contract is put on hold while the space is unoccupied. Will any other fees apply to your lease agreement? Always check the fine print of your lease agreement as part of your due diligence.įor instance, tenants often get charged for cleaning during fit-out works where cleaning is not possible. If you’re unsure about long-term needs, consider locking in a property that suits your immediate requirements and negotiating a clause that will give you the right to expand your office footprint down the track. Commercial tenants can negotiate various types of incentives, so it's essential to understand the option that will work best for your business.Ĭarefully evaluate any plans for your future business expansion in order to avoid paying for additional space that you might never actually occupy. IncentivesĪre you entitled to an incentive? If so, how much and what type (rent-free period, rent abatement or fit-out contribution)?Ĭommercial lease incentives are concessions or payments offered by a landlord to encourage a new tenant to sign a lease or entice an existing tenant to renew. Note that net rent excludes building costs, and effective rent is the amount payable after factoring in incentives. Rent calculationĭo your research to gain an understanding of rents and incentives for comparable properties and consider how your rent will be calculated - is it net, gross or effective? It also stops your landlord from finding a replacement tenant until you decide whether you want to stay or relocate. That's because it gives you leverage when you are looking for alternative premises in the future. ![]() ![]() And, while we don't always recommend exercising an option in this market, it's certainly something you want to have up your sleeve.Įven if you plan to relocate after the initial term, we advise our clients that having the option to extend the lease is the only safe way to go. When the lease expires, what are your options? Will you have an option to renew or extend your lease term?Īn option to renew or extend can be crucial in markets with low vacancy rates, and where the location of your current premises is important to your business success. However, if you want to get a terrific deal and your business trajectory is clear, think long-term. So, if your needs have changed or are likely to change, do not commit for more than 1-3 years - consider a short-term lease with renewal or expansion rights instead. If the last few years have taught us anything, it’s that there’s real value in having short, flexible lease terms. What is the duration of the lease? What is the ideal lease term for your line of business?Ĭonsider the short, medium and long-term needs of your business. Download The Commercial Leasing Checklist Commercial leasing checklist Lease term
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |