5 Questions to Ask Your Commercial Realtor Before Signing a Lease
When leasing commercial real estate in Florida, business owners should ask their commercial realtor the following top five questions to ensure they make informed decisions:
- What is the Total Cost of Occupancy?: Beyond the base rent, it’s crucial to understand all associated costs, including common area maintenance (CAM) fees, property taxes, insurance, utilities, and any other expenses. Knowing the total cost of occupancy helps in budgeting and comparing different leasing options.
- What is the Lease Term and Flexibility?: Understanding the length of the lease term and any options for renewal or termination is essential. Business owners should inquire about lease terms that align with their long-term plans and inquire about flexibility if their business needs change.
- What are the Terms of the Lease Agreement?: Business owners should thoroughly review the lease agreement with their realtor to understand all terms and obligations. Key considerations include rent escalation clauses, permitted uses of the space, maintenance responsibilities, subleasing options, and any tenant improvement allowances.
- What is the Property’s Condition and History?: Requesting information about the property’s condition, history, and any previous tenants can provide insights into potential maintenance issues, property management quality, and the overall suitability of the space for the business’s needs.
- What is the Surrounding Area Like?: Understanding the neighborhood, demographics, nearby amenities, traffic patterns, and competition can help assess the property’s location suitability and potential impact on the business’s success.
By asking these questions, business owners can gain a comprehensive understanding of the leasing opportunity, evaluate its suitability for their needs, and make informed decisions that align with their business objectives and budget constraints. Additionally, working closely with a knowledgeable commercial realtor can provide valuable guidance throughout the leasing process.
