In the dynamic realm of business, securing the right commercial real estate is a key decision that can significantly impact your company’s success.
When considering a commercial real estate lease, it is important to scrutinize several key factors to ensure a smooth and mutually beneficial agreement.
1. Lease terms and duration
Begin by carefully examining the lease terms and duration. Understand the length of the lease and whether it aligns with your business goals. Shorter leases provide flexibility but may come with the inconvenience of more frequent renegotiations. Longer leases offer stability but require a thorough assessment of your long-term needs. Determine if there are provisions for renewal or early termination, providing you with options to adapt as your business evolves.
2. Cost structure and hidden fees
Uncover the intricacies of the cost structure. Beyond the base rent, delve into additional charges such as maintenance, property taxes and insurance. Ascertain whether these costs are subject to escalation over time or fixed. Identifying potential hidden fees is necessary for budgeting purposes, ensuring financial predictability throughout the lease term.
3. Zoning and permits
Scrutinize the zoning regulations governing the property. Ensure the space has appropriate zoning for your intended use. Investigate whether any permits or licenses are necessary for your business activities. Complying with zoning and permit requirements prevents potential legal complications and ensures a seamless business operation.
Whether looking for an industrial space, which had a 6.8% vacancy rate in the third quarter of 2023, or retail space, the New Jersey commercial real estate market has many offerings for businesses. Before jumping into a lease agreement, due diligence is necessary to avoid unwanted hassles down the road.