Commercial Leasing Mistakes Business Owners Should Avoid
Starting a new business is daunting, and very few put the time into a selecting a good commercial real estate site to lease. Here’s what NOT to do.
- Making A Decision Too Quickly –As a business owner, it’s important to look at a few different buildings, check out different leasing agents and make an informed decision on what will be the best fit for you. Having your building lined up ahead of time also gives you time to make any necessary changes to the space. Procrastinating finding a space or deciding too quickly could hurt your business if you choose the wrong location. Or worse, you could end up in a contract with a leasing agent that is not right for you.
- Only Looking at the Listings – Say you find a listing that is perfect for your business. It has all the amenities, the square footage meets your needs and the price is right in your range. You take a look at the space and are excited to sign a contract right away. It’s easy to get swept away in that excitement, especially when some leasing agents are trying to get you to sign a contract right away. But there’s more to consider than just the right space! Is the building in a high traffic or foot traffic area? Research the area around the listing and also research the agent to see if it’s a good fit for you.
- Not reading the contract – Before you sign a legally binding contract, you should read it. And you shouldn’t be the only one to read it either. It’s your responsibility to understand every line in a contract. A leasing agent’s first draft of a contract is probably not in your favor. Don’t be afraid to negotiate or walk away from a contract that isn’t good for your business.
- Not Counting Cost – When you create your business model and list expenses, a lot of new owners don’t factor in total cost. Along with rent make sure to count utilities and any maintenance you’re responsible for according to the contract. While some leasing agents take care of everything, others put the cost on you. Make sure to ask!
- Not Asking For Help – Especially if you’re a new business owner, don’t be afraid to ask for help. If you don’t understand parts of the contract or have questions about the process – ask! A lawyer, a friend, business partners and your leasing agent. In fact, ask all of the above. Whether you take the advice or not it’s good to hear different perspectives and gain a full understanding of all the moving parts in starting a new business.
Founded in 1993, DAG has been a successful, top-ranked, San Antonio based commercial real estate brokerage, investment and development services firm. Dominion serves their client base in all areas of brokerage, leasing, property management, development services, asset management and consultative services. If you’re new to small business or interested in one of our properties, don’t hesitate to get in contact with us right away!