Signing a lease is a significant step for any business owner. The commercial real estate in Galveston can be complicated and it may take years to find the right space for your business. And when you find the space, you must sign a contract to get moved in and concentrate on running your business. However, as with other legal agreements, a commercial lease is an important document that requires some research. Before you sign a commercial lease agreement, here are the steps you must take:
Research the Area
As you explore the Galveston commercial real estate, take your time analyzing the area and getting a good idea of your possible clientele. This form of real estate involves a lot of legalities you may not be familiar with. Also, finding the right location is important for your business to thrive.That is why you must research the area and determine which one gets you an advantage over your competitors.
Learn More about the Landlord
Find out as much about the landlord as possible. Keep in mind that you are entering a business partnership together, so ensure you know who they are and what their financial situation is. This will help ensure they will honor the legality of the lease you will be signing with them. Know that you can get evicted because of foreclosure when your landlord fails to make their mortgage payments to the bank.
Additionally, ensure you understand what you are on the hook for every month. Ask the landlord about how expenses such as insurance, maintenance, property taxes, security, parking, utilities, and others are paid.
Engage an Experienced Commercial Real Estate Agent
An experienced agent will help you find a location and give you advice on the lease negotiations. Commercial leases are complex and you may miss out on some opportunities if you don’t have an expert on your side before you sign one. Your agent can help you navigate any offer. Also, renting the wrong property from the wrong landlord can be expensive and has negative consequences for your business. Make sure to have the document vetted and approved by a real estate lawyer that your agent may be able to recommend.
Determine your Terms
Getting a favorable term allows you to get the most of the cost invested in the leasehold improvements. Most businesses prefer short-term over long-term leases. A long-term lease can be a good investment if you are starting a business in an emerging or growing area while a short-term lease offers the flexibility to move locations or close the business if it doesn’t end up being profitable.