6 Differences Between a Business Space for Rent in Overland Park and a Retail Space
When thinking about an office space location, it is important to remember that convenience is key to a business selling a service. Which means that if you are a dentist, optometrist, veterinarian, or any another type of professional who wants to set up an office in a retail space, this could help bring in costumers because of the location’s convenience and accessibility. However, when trying to decide if a retail style space is good for you it might be a good idea to keep a few points in mind when making your decision, as outlined in the article “One Lease Does Not Fit All,” which narrows down the important differences between different types of spaces and leases:
Gross Income Reports
Most spaces that have a retail lease may require the tenant to include a report of the amount of sales the tenant is projected to make in a term (monthly, quarterly, or annually). This could potentially be avoided if the tenant makes it so in the lease. It is worth noting that these kinds of reports are not significant for most professional office leases.
It is important to understand the differences between the retail space and an office space when looking at what you are actually paying for. Most retail spaces make the tenants pay for everything from maintenance to insurance on top of the base rent. Whereas in an office lease—depending on the type of lease—the tenant has different payments and usually only pays operating expenses on top of the base rent.
As discussed above, the tenant pays for the maintenance in most retail spaces. In a professional office lease the maintenance and repairs are usually controlled and paid for by the landlord, who should make sure that the office space is up to date and standard quality. Tenants should make a point of including this in their lease.
Changing your name
In most cases the landlord in a retail setting must approve a change in the business’s name. This isn’t true for most trade names in office spaces, where the landlord generally considers it irrelevant to the lease.
Redesigning the Interior
Design of the interior space in a retail store is very important to the overall image of the property. Design can affect how many people enter the store, which in turn affects the income of both the store and the general foot traffic and profitability of the whole property. Because of this, interior design might be one of the things that the landlord will want the power to sign off on. This isn’t the case for office space, where the interior space or other alterations might not be significant to sales or the landlord’s bottom line.
In most retail spaces, the landlord will not let you set up your business in a premises where there’s competition near by. Some places might have an exception, but when the landlord sees a potential problem with the gross sales in a certain market, they could refuse you a space. On the other hand, this kind of radius restriction does not happen often in the world of professional office space.
With these points in mind, you can be better equipped to make a decision on whether or not you want to open a space in a retail section or a professional office space. Once you have made your decision, be prepared for differences in leases and landlord relations.