How to lease office real estate efficiently is often a question businesses come across!!
So, if you are pondering over a similar question check out this lease commercial real estate property guide to understand the process of renting lease office real estate space from a tenant. The process involves identifying the correct commercial real estate, negotiating as well as signing the lease. The process can be a lengthy one and it is important to understand the process for a seamless leasing experience.
1. Determine the Parameters
The initial step to lease a property starts with evaluating certain parameters like :-
What is your employee pool,
What is the property type,
Where do you want it to be located,
What is your desired property size,
Budget as well as accessibility.
This is important because the realty market holds a wide assortment of properties for business of all types. These parameters help in how to rent your commercial property hassle-free and find commercial spaces that suit your needs.
2. Types of Brokers
Usually, when it comes to how to rent out commercial property, there are 2 types of commercial real estate brokers involved in the process i.e. :-
Leasing agent and
The former one represents the landlords and the latter one represents the tenants. Leasing agents work best in the interest of the landlords where as tenant brokers are more or less third-party brokers.
3. Types of Commercial Leases
Depending upon the fees and other associated costs, there are usually 3 kinds of commercial leases. The 3 kinds are:-
Full service lease,
Net lease and
Modified gross lease.
Full service lease is the most common one when it comes to leasing building for commercial purposes with an all-inclusive rent. Whereas in net lease parties get into an agreement where the landlord charges a lower rent on an annual basis. Modified gross lease is a blend of both full service lease and net lease.
4. Identify the Right Property for Your Business
When you go about considering how to lease office real estate and which property suits your needs the best, there are certain pointers to keep in mind to avoid any further inconvenience which are listed as follows:
• Amenities and services
• History of the landlord
• Anchor tenants
You must thoroughly check on these above-given points, and only when everything looks good, you should proceed with the purchase.
Once the property has been finalised for lease, it is the time to negotiate the lease. As you formally enter into an agreement for lease, it must be in proper documentation. Such requests are supplied from your broker to the landlord’s broker.
Understand the common commercial lease terms beforehand or have an in depth talk with your broker to know the minute details about leasing and the documentation involved.