Commercial real estate agents are not exclusive to buyers. As a business owner looking to lease space, you can (and should) seek assistance from an agent. Especially in today’s hot commercial property market, working with an agent can only help you as a renter.
Here are the top 4 reasons you should consider working with a commercial agent while looking to lease space for your business.
Reason #1: You Have More Properties to Choose From
As a tenant, you’ll be able to find some potential properties listed on public search engines or marketplaces. However, this doesn’t show the full picture of what’s actually available for you to rent.
Some commercial properties are only visible through broker channels or commercial real estate databases, such as Costar, LoopNet and BrokerNet. An agent can use their access to these channels to find a list of prospective properties you otherwise wouldn’t be able to find.
Having access to all of these through an agent will give you more locations to choose from while increasing your odds of finding the perfect space.
Reason #2: It Makes the Process Easier
The process of finding and closing a commercial lease can be time- and resource-intensive. Setting up tours, coordinating schedules and viewing properties is a ton of work. Reviewing leases, negotiating terms and assessing zoning codes is even more so.
For the average business owner, this can take up precious time while distracting from your primary responsibility. And if completing a lease isn’t your primary focus, it may take longer to secure a space for your business.
Because of this, many businesses elect to outsource these responsibilities to a commercial agent. With leasing properties as their primary focus, an agent is able to accelerate many of the time-consuming processes that go into finding a lease. They can also aid the decision-making process by evaluating the attributes and determinants of each space against your interests.
Plus, outsourcing the work of setting up tours and corresponding with property owners will save you a significant amount of time.
Reason #3: You Can Negotiate Better Lease Terms
Commercial leases have a number of factors to work through. Negotiations on terms such as rate, length, utilities and improvement costs will have a significant impact on your experience as a tenant. It’s important to understand what is a landlord responsibility and what is a tenant responsibility from a financial and maintenance contractual perspective.
Reason #4: You Get the Best Leasing Options
One of the most important parts of a lease agreement is it’s term, or length. How long will you stay in the space?
Once you sign your lease, you could be stuck with it for a long time. 5 to 7 year terms are common. Because of this, it’s worth enlisting the help of an expert to make sure the contract is favorable. By assessing the value you’re getting out of these new operating expenses, you’ll ensure that the lease benefits your business in the long term.
There are pros and cons to both short and long leases. Shorter leases give you more flexibility if your real estate needs change. Longer leases offer a more stable rental agreement that protects you from the volatility of rental rates. A leasing agent will be able to help you identify an agreement length that matches your business’ needs.
For example, landlords will amortize the costs of any improvements you make to the space over the length of the lease to ensure a return on the investment. A shorter lease will compress the costs into fewer and more significant payments, while longer leases will spread them out. Working with an agent can make it easier to weigh the advantages of each option.
While many companies assume that working with an agent is only necessary for purchasing properties, working with a commercial agent can make it easier to find a lease that meets the needs of your business.
Need help leasing commercial property? We can help. Get in touch today and tell us about your needs.