Featured News 2014 What Will It Really Cost You to Rent Business Space?

What Will It Really Cost You to Rent Business Space?

You may have narrowed down your prospective rentals to a few spaces, or you may have landed on the site where you want to open up shop. The advertised monthly rent may even fit well within your budget. As promising a start as that is, the real cost of a commercial lease can be considerably higher than the listed rent amount. To figure out what you would really be paying for a commercial rental, there are at least five things you need to do:

  1. Figure out how the square feet are calculated. Let's say that a suite was listed as a 2,000 square-foot office. That may not actually mean 2,000 square feet of floor space. The calculations might actually be including some or all of the outdoor walls. So if you're going to be paying per square foot, you could end up paying for thick walls as well as the space you can actually use.
  2. Find out if you will be charged for common facilities. This could mean hallways, elevator shafts, bathrooms, parking, etc. that you share with other businesses. When you are discovering whether or not you can afford a rental, you'll have to remember the price of any common areas.
  3. Calculate the true value of the square feet. If the structure of the space includes strange angles, narrow spaces, etc., you will not be able to get the most out of that space. It can be a greater value to pay more per square foot for a well laid out space than to save a few bucks on rent for a poorly configured area.
  4. Find out about additional rent. With a commercial lease, you could often find yourself paying more than the listed monthly rent. You may have to pay for real estate taxes, insurance, and operating costs, etc. Don't be surprised by these. Learn of these ahead of time to see if your budget can handle it.
  5. See if there is a percentage rent. If you are at a mall in particular, a landlord is likely to ask for a share of your profits along with your normal rent.

Of course, the rent is likely not set in stone. There is room for negotiation, on this, and other issues as well. For there are more than financial considerations to weigh before you sign a lease. When it comes to a complex legal venture such as the commercial rental, a real estate lawyer can help you review the lease and rent, ensure that your rights are protected, and help you negotiate with a potential landlord. See how a legal professional can help you when you call an attorney today!

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