4 Things to Know Before Renting Commercial Property

We live in a time when all it takes to start a business is a laptop and an internet connection. That said, it takes a lot more to take things to the next level including remarkable infrastructure. When we talk about infrastructure, we’re talking about the size of your commercial real estate and the various other factors that add to it including location and building design. All in all, commercial real estate is vitally important for the sake of the growth of your business. If you’re considering rented commercial property for your establishment, there are a few things you should know. Take a look. 

Commercial Leases are Long Term

If you’ve ever lived in a rented home, you’ll be familiar with a residential lease and know that it is typically for just one year. Commercial real estate lease on the other hand could be for up to 5 or 6 years or sometimes even more. That changes the dynamics entirely. On the upside, commercial leases tend to have fewer voids.

Commercial Litigation is Complex

Commercial litigation is more complex than residential litigation. There are several zoning, city and construction laws involved with commercial litigation and other specific guidelines laid down by the owner. In addition, there are laws limiting how you can use the commercial property; you can’t use it for a purpose other than what’s specified. 

You’re in charge of Repairs and Damages

The Burdon of repair and maintenance almost always falls on the shoulders on the tenants in the case of commercial real estate as opposed to residential real estate, wherein they are shared by you and the owner or solely the responsibility of the owner.

It’s best to get an insider on your side before making any commercial real estate related decision. That’ll help you take a more informed and rewarding decision.

Rent May Increase

There is also generally an ‘upward only’ rent clause after rent reviews. That means, the property’s rent is highly unlikely to decrease after a rent review but it may very well go up.