Leasing Commercial Property in Shopping Centers
One of the first and most important things to consider before going out and searching for a space is your budget. Determining your budget for a lease space will allow you to know what you can afford and also help narrow down your choices. You need to be sure you are totally comfortable with the number you come up with, as this will take a pretty large chunk out of your monthly budget for your business.
Depending on the industry your business is a part of, the amount that should be allocated toward a lease payment varies. Typically, this would be approximately three to ten percent of gross monthly sales. Aside from your lease payment, you also have to account for several other costs, including property taxes, insurance, maintenance, utilities, and construction. These are sometimes recurring and sometimes a one-time cost, but are nevertheless important.
You should also read up on the different types of leases. There are four different types for retail. These include a triple net lease, single net lease, double net lease, and modified net lease. A triple net lease is the most common, where the tenant is responsible for most of the costs, while the landlord simply pays for structural repairs. Single net leases are where the tenant is only responsible for property tax and utilities. In a double net lease, the landlord will only pay for maintenance, while the tenant covers everything else. And lastly, a modified net lease allows for expenses to be split between the tenant and landlord.
Another important consideration is space. How much space do you need? Some businesses do just fine with a small space, while others need a larger space to accommodate all of their products and allow for success. You should consider what types of areas you need to have space for. These may include things like a sales floor, stockroom, offices, bathrooms, dressing rooms, and additional storage space. While you may not need all of these things, you should definitely make a plan around what you do need.
NAI Isaac Commercial Properties is based in Lexington, Kentucky and specializes in the leasing, sale, and management of large commercial real estate throughout Lexington and the surrounding areas of Central Kentucky. Our staff is professional and experienced in property management, leasing, acquisition or disposition of office, retail, and industrial properties, as well as investment and development opportunities. We want you to achieve the full potential of your business and we are here to help you do that. We are excited to address any real estate opportunity or challenge that you have for us. We are confident you will love working with us. We are the only real estate firm in Central Kentucky to achieve the AMO designation, so you