Common Mistakes to Avoid Before Signing a Retail or Commercial Lease
For many start-up companies, renting a retail or commercial space is one of the very first steps in establishing a business venture. Regardless of the nature of your business or whatever product or service you may be planning to sell, having a commercial space of your own means you’re on the right track towards the creation of a successful enterprise.
There are certain factors to look out for even before signing a retail or commercial lease. More often than not, start-up business owners end up making mistakes that may be detrimental to their efforts, especially when it comes to the selection of the retail or commercial space.
If you are a business owner wishing to prevent making these errors, keep the following common mistakes in mind:
1. Not Checking the Entirety of the Retail or Commercial Premises
You should check the venue facilities thoroughly in order to ensure that you would have enough suitable space for your business amenities, equipment and storage. You should also ensure that everything is working properly, including the power outage, plumbing and HVAC units. These things can greatly affect how your business would function daily, so be sure never to overlook any of them during your preliminary visit.
Is the location perfect for attracting more customers? Does it have enough amenities to secure your venture? Are there power outages during storms and extreme weather conditions that may affect your business suitable in the long run? How long could you be without air conditioning if the HVAC system breaks down? These are some of the questions you should be asking and ensuring they are captured in the documents before signing the lease.
2. Not Checking the Term of the Lease
Aside from the main premises, you should also pay attention to the terms and conditions of the lease. One of the major things you would have to look out for would be the length of the contract.
If the documents dictate that you need to be tied to the venue for longer than you were anticipating, you may want to negotiate a shorter term — you wouldn’t want to be trapped within that certain area if your business isn’t picking up steam.
3. Not Checking the Flexibility of the Lease
This is somewhat similar to the second point, but the main difference is you hoping to extend your stay instead, as the location turned out to be perfect for the type of business that you have.
Check the contract if it is flexible enough to give you the option to extend your stay for a longer period and that the terms remain in your favour.
4. Not Checking the Reviews and Feedback
You should also make time to check out the reviews, going through all former tenants’ experiences about the commercial space itself. Learn from their mistakes, so you don’t end up committing the same ones.
Whether you are beginning your journey as a start-up business owner or established with multiple outlets, make sure that you have gone through all your sources and research materials before signing any document. Commercial leases are not to be taken lightly, and if you happen to make the wrong decisions, your venture may be negatively impacted in the long run. Be vigilant, inquisitive, and above all, wise.
But even more importantly, reach out to a specialist who can help you achieve the best possible outcome for you before signing on the dotted line. And look for one who operates on a No Savings No Fee basis!
If you are looking for a well-trusted company offering commercial lease negotiation services in NSW, Lease Negotiation Services has you covered. We are a lease negotiation specialists providing an independent professional advisory service for tenants when negotiating new leases, option leases, lease renewals and site relocation. Contact us for more information about our services and for a free confidential strategy consultation.