Commercial properties around the globe

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How to rent commercial properties

Office real estate is in high demand in almost every country in the world. Wherever your company is located, you will need premises for conducting business, working with people, and other essential tasks. You can buy or rent such real estate on the most favorable conditions. In this article, we will tell you about the main subtleties of leasing a commercial property for business owners. You will learn how to solve the problem of renting quickly and how to lease a property that will fully meet your organization’s fundamental needs and price expectations.

Commercial lease

What is the process of leasing a commercial property

Finding the right property to lease can be quite challenging for both novice and experienced business participants. To quickly and easily answer the question of what to look for in commercial lease, it is necessary to consider not only the price and location of the proposed office.

First, the company owner needs to have at least a general idea of how the lease is carried out and the trends in the local office real estate market. It is also desirable to be prepared for the unexpected because each case’s commercial lease is unique. The lessee should always take into consideration:

  1. The needs of your company, which will allow you to make the search for the desired space more specific.
  2. Placement. The office’s location will undoubtedly affect the quality of its future work. It is necessary to choose a legal address based on the specifics of your organization – the region of sales, accessibility to customers, and other companies with close cooperation.
  3. Costs. The main costs for you will be the monthly rent, payment of utilities and other mandatory payments. In addition, you should take into account possible, not inconsistent with the contract changes in rates.
  4. Type of premises – commercial, office or industrial. It is necessary to choose the object of real estate that will bring you benefits, taking into account the type of activity and the needs of your company.

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Consequently, before making a decision to lease a particular space, it is worth analyzing the available offers in your area and only then choosing the best of them.

Types of leases for office and industrial real estate

Depending on the nature of services provided by the lessor, the following types of commercial lease are distinguished:

  • net lease – the lessee pays the base rent under the contract, as well as additional expenses, which may include insurance and property maintenance rates;
  • double net lease – the payment includes the basic rental rate, insurance, and property tax;
  • triple net lease – the tenant pays most of the costs, including utilities and maintenance;
  • bonded net lease – the tenant is responsible for all risks associated with the property being used;
  • full lease – the lessee pays only a fixed fee; the rest is paid by the lessor.

In addition to the above-mentioned different types of lease in today’s real estate markets, you can also often find a percentage lease, when the client pays the lessor a minimum amount and an additional percentage of the gross income of his company.

So, the lease types differ from each other mainly by the nature of the services paid by the tenant. The task of the buyer is to choose the most appropriate of them.

The concept and application of commercial lease options

The choice of lease variant is made on the basis of several criteria. The main commercial lease options include:

  • rental price;
  • location of the rented object;
  • additional terms of the contract;
  • rates included in the rent, etc.

Therefore, the lease option terms accepted by the tenant must be specified in the contract being drawn up.

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What do you need to know before signing a commercial lease?

It can be quite difficult to find a suitable space for your office or production facility, despite the wide range of offers.

To speed up the office space for lease process, it is important to understand your goals and objectives, as well as the types of property on offer and the terms and conditions of the lease.