What to Consider When Leasing Commercial Property
When renting a space for your business there are several factors to consider. If you are going to sign a lease, you need to make sure that you are entering a financial beneficial decision. Here are some things that you should consider when leasing commercial property in Lexington, KY.
Usable Square FootagePrior to making a lease agreement, you should ask for clarification on the square footage. Commercial leases tend to quote the Rentable Square Foot of the property, but this is not an accurate portrayal of the space. The RSF figure is calculated based on combining the amount of square footage of the private premises with a proportional share of the building’s common areas. The collective areas are used among the tenants include staircases, lobbies, restrooms, and corridors.
To find the square footage of commercial property lease by itself, you need the Usable Square Footage. The distinction between the RSF and USF is important to make. You will need to know the difference between how much space you are able to use and the square footage you will be charged for.
Nearby TenantsAnother factor to keep in mind is the nearby tenants. The neighbors of the commercial leasing property can play a monumental role in the success of your businesses and can be used as a negotiation tool. If you are counting on an adjacent business to help attract customers, then you should think about including a co-tenancy clause to your leasing contract. Adding this stipulation allows you to break your lease if the tenant were to leave and is not replaced within a predetermined period of time.
And while neighbors can be beneficial, some can be detrimental if they offer similar services. You can ask for an exclusive use clause if you are worried that your landlord may rent space nearby to a competitor. The surrounding businesses are just one aspect you should consider when leasing commercial property in Lexington, KY.
Ability to Make ChangesThe ability to make changes to the property needs to be discussed beforehand. Typically older buildings will not have access to Wi-Fi or cable lines that companies require, and must be upgraded. If you cannot find a space that is suitable to the needs of your business, you may have to consider a property that will have to undergo alterations. In this situation you can ask for the inclusion of “build-out” provisions within the lease. This will specify the exact improvements that will be made, who will be paying for the changes, and if the space must be returned to the original condition at the end of the lease. Upgrades to the property are another facet of what you should consider before leasing commercial property in Lexington, KY.
NAI Isaac is a local commercial real estate firm and property management agency. We offer a number of services including but not limited to real estate consulting, tenant and landlord representation, and leasing services. Our firm has history of superior performance and professionalism, and can guarantee you will the highest quality of services in the industry. We are located in Lexington, KY to proudly offer our services to the surrounding area. Call us today.