To rent commercial property can be a big move for any business, whether you’re just starting out or expanding. It’s exciting but also a little overwhelming. Many entrepreneurs and business owners make mistakes that could cost them down the road—mistakes that are easy to avoid with a bit of careful planning and foresight.
We are RDS Real Estate, serving the Greater Fort Worth Metro area with over four million square feet of prime industrial and commercial property for rent. Call us at 817-439-3224 for more information.
Here’s a rundown of the most common mistakes tenants make when they rent commercial property, and how you can avoid them.
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Not Reading the Lease Thoroughly
You’d be surprised how many people rush through the lease agreement, only to realize later that they’ve signed up for something they didn’t fully understand. Commercial property for lease leases are often complex, with lots of terms and conditions that could affect your bottom line. Make sure to read everything carefully. If there’s something unclear, don’t hesitate to ask for clarification or even hire a lawyer to go over it with you.
Take time to review critical aspects, such as the rent amount, payment due dates, rent escalation clauses, and your responsibilities for maintenance and repairs. There might be hidden fees or clauses that will come back to haunt you later. So, being thorough up front can save you a lot of headaches later.
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Underestimating Extra Costs When You Rent Commercial Property
The rent price is usually just the tip of the iceberg when it comes to the cost of renting commercial space. Many tenants forget to factor in all the additional expenses that come with the property. Things like utilities, property taxes, insurance, maintenance fees, and common area costs can add up quickly.
When negotiating a commercial property lease, always ask about these extra costs. Don’t assume that utilities or building maintenance are included unless they’re clearly stated in the lease. It’s also essential to check for hidden charges such as “pass-through costs,” where the landlord passes on property-related expenses to the tenant. These can really catch you off guard if you haven’t accounted for them.
- Not Considering the Long-Term Needs
It’s easy to get swept up in the excitement of finding the perfect commercial space, but it’s essential to think about your future needs as well. Will this space still work for you in 3, 5, or 10 years? Consider your potential for growth and whether the property can accommodate expansion.
A good rule of thumb is to plan ahead. For example, if you’re a retailer and anticipate increased foot traffic, make sure the location can handle the increased capacity. Think about parking, storage, and the layout. The last thing you want is to outgrow your space or find that it no longer suits your needs after a few years.
- Ignoring the Importance of Location
Location, location, location. We’ve all heard it before, but it’s worth repeating when you rent commercial property. One of the biggest mistakes tenants make is ignoring how crucial the property’s location is for their business. A great space might seem perfect on paper, but if it’s not in a high-traffic area or accessible to your target customers, it could hurt your business in the long run.
Take time to assess the neighborhood, foot traffic, and parking availability. If you’re opening a retail store, visibility is key. If you’re running an office, accessibility for employees and clients should be at the forefront of your decision-making. Remember, a prime location often comes with a higher rent price, so balance that against the potential for business growth.
- Forgetting to Negotiate Lease Terms
Too many tenants accept the first offer the landlord gives them when they rent commercial property, but commercial leases are negotiable. Don’t be afraid to ask for a better deal. Even if the rent price seems set in stone, there may be flexibility in other areas, like lease duration, renewal terms, or tenant improvements.
For example, you might be able to negotiate a rent-free period at the beginning of the lease or a cap on rent increases. Don’t settle for a lease that doesn’t meet your needs or budget. If you’re uncertain about the negotiation process, consider hiring a commercial real estate broker to help you secure the best deal.
- Overlooking the Exit Strategy
A lot of tenants sign leases without thinking about how they’ll get out of the agreement if things don’t work out. Make sure your lease includes an exit clause that gives you flexibility if your business needs to move or close. You don’t want to be stuck with a lease you can’t get out of.
An exit clause might allow you to sublet the space or terminate the lease early under certain conditions. Review these terms carefully, and make sure you’re comfortable with the consequences if you need to move on.
- Not Having Insurance
Commercial property insurance is a must for protecting your business, but it’s often overlooked by new tenants. Depending on the lease, you may be required to carry certain types of insurance, such as liability, property damage, or business interruption insurance. Make sure you’re covered before moving in.
If you’re unsure about the coverage you need, speak with an insurance agent who can guide you in the right direction.
A final word about RDS Real Estate
The Fort Worth business community knows that when it matters what kind of property you lease, there really is only one name to remember . . . RDS Real Estate, locally owned and operated. Call us today and arrange to see some outstanding Fort Worth commercial space for lease in Tarrant, Parker, and Johnson Counties.