While most of us are familiar with residential real estate, the world of commercial real estate can be vastly different, and at times even confusing, but that is why we are here.
Whether you are a first time tenant or a seasoned lease negotiator, being prepared before you start the process can give you an advantage and help your advisors in providing them with the most information possible for them to guide you on your business journey.
To start, we will take a look at leasing options, here are some helpful tips to get you prepared for the process.
If you are new to the leasing market or expanding an operating venture a good start is putting together a business plan. A business plan provides your advisor with a solid understanding of your business operation and how you see it growing. If you are a startup Company, it may also often be required by landlords so that they too can understand your company
When building a business plan, it is important to account for things like target markets, financial resources, cash flow, and potential for growth. Not only will these have an influence on your business, but if you’re planning for aggressive growth, it may be that you need to consider a larger space to start with as most commercial leases are 5+ years in length. You would not want to outgrow your space before you really get comfortable in it and having an exit strategy is best built into the front end of your plan.
Commercial real estate advisors know the market and what markets may be better suited for your business whether it be property zoning, land use bylaws or landlord restrictions that may affect your business.
Through their knowledge and expertise, your commercial real estate advisor can also provide advice with regards to your business. This can be through forecasting rent prices, identifying changes to municipal property taxes structures but also include some candid conversations on landlords negotiating positions.