Even though you have the perfect name and idea for a business, you may lack the finances necessary to buy the space to open that business. Thankfully, you can rent your space, but you’ll want to make sure you proceed carefully. Find out a few frequently asked questions when it comes to renting space for a business.
1. Question: Do I Need a Real Estate Broker?
Just as you can look for and buy or rent a home on your own, the same is true of securing business space. However, any money you save tackling the task on your own might equal the time you waste looking for the perfect space. A real estate broker has a better idea of all of the available properties. What’s more is there might be several available business spaces that aren’t listed. If you do decide to hire a broker, it’s best that you choose one who specializes in tenants rather than landlords.
2. Question: What Should I Consider When It Comes to Location?
While you might find the perfect space for your business, it could be in a location that’s less than ideal. Specific things to look for in a location include one that’s a good distance from any competitors you have, whether you prefer to share a location with businesses the same size as yours and if the other services available in the area are complementary to yours.
3. Question: What Should I Look for in the Physical Structure?
In regards to the physical structure of your business space, specific items to consider include if you have enough space, if you’ll need to make modifications to the space and if the outside of the building matches the overall aesthetic you’re hoping to achieve.
4. Question: What Should I Worry About When It Comes to Rent?
With your rent, the amount you pay depends on such factors as the type of business you plan on operating, the current real estate market and the landlord’s willingness to negotiate with you. There are two ways rent is calculated: by square feet and by percentage. If you have to pay rent according to square footage on a space measuring 1,000 square feet priced at $12,000 for each square feet, your total rent of $12,000 spread out over 12 months is $1,000 a month. Something to bear in mind is that the overall width of the interior and exterior walls as well as the space occupied by an elevator might be included in the square feet measurement.
For rent that’s based on percentage, it’s determined by both a portion of the total proceeds that exceed a specific amount every month and the space’s square footage. If you’re charged $2,000 in monthly rent and seven percent of your gross monthly sales that exceed $60,000, you’ll have to pay your landlord an extra $2,800 in addition to your regular $2,000 rent. As you’re structuring your monthly finances, know there’s a chance you might also have to pay for insurance, maintenance/repairs, utilities and taxes.
5. Question: Does It Matter Which Businesses Neighbor Mine?
Before you decide to pass up on a space that might not have everything you’re looking for, consider the other businesses next to the space and in the immediate area. Choosing an imperfect space near businesses you can form ties with might be more beneficial than opting for the absolutely perfect business location. For instance, if you plan on opening a coffee shop, it might be beneficial to position your store next to or close to a bookstore or office building.
Should you have any additional questions regarding renting business or office space, be sure to reach out to an experienced broker or a business owner who has rented space in the past.
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The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.