Renting commercial real estate can have a big impact on a business—for better or worse. A good lease can help your small business grow and flourish in a great location, but a bad one could potentially cost your business a lot of money and can be especially risky for small businesses. Here are a few things to do when renting a space, as well as a few things to avoid, as suggested in the article “Location and Leasing“:
- Look at multiple properties so be able to compare rent, location, and other variables.
- Research demographic data for an area to get an idea of your potential customer base.
- Make a Site Model Criteria for your specific business.
- Utilize the assistance of a commercial real estate attorney to help with negotiations or purchasing.
- Talk to the planning and zoning departments of a city to make sure that you are in compliance with all code requirements.
- Negotiate for a short term lease with renewal options to minimize risks.
- Put everything in writing
- Negotiate for no competitors to be allowed to rent in the same building as you.
- Use the largest signs allowed and make sure they clearly state what your business offers.
- Include terms in your lease that address the possibility of expanding.
- Evaluate a location solely on rent.
- Allow your landlord to determine all of the terms.
- Be too quick to settle on a location.
- Depend on verbal agreements during negotiations.
- Agree to a lease without making sure you have read and understand every single term.
- Personally guarantee a lease if you can avoid it.
- Submit to conditions that are bad for your business – move on to looking at another space.
- Sign a lease without consulting your lawyer.
- Depend only on your landlord’s leasing agent for advice.
- Close negotiations without making it clear that the lease is still subject to securing any licenses and permits.
Renting a commercial space requires careful planning, research, and attention to detail during negotiations. Be a smart negotiator and don’t let your business get stuck with a lease that will hurt you financially in the long run!
If your business is interested in finding commercial space for lease in Kansas City, give us a call at 913-685-4100 to learn more about one of our office suites for rent in Kansas City or to set up a tour!