Searching for a commercial space for your business can be an immense undertaking. From investing your time into finding the perfect property to the financial investment involved in a commercial lease, the process can be a tricky one to navigate, especially while running the day to day aspects of your business.
Since your commercial rent or lease payment is a significant expense for your business – typically the second highest expense for a business next to payroll – it makes sense to consider working with a professional while searching for your commercial space.
Here are just a few good reasons to have a Commercial Real Estate Agent on your side:
1. They Save You Time: There are only so many hours in the day and there is a lot that goes into searching for a commercial space: researching properties, contacting the landlord, viewing the property, and negotiating terms. Finding the right property for your business, ironically, can very easily take away from the time that you would normally reserve for running your business. A commercial real estate agent will do the legwork for you, saving you effort, money, and ultimately time that you can dedicate to your business.
2. They Know the Market: A metropolitan area has many submarkets with different levels of demand. Since commercial leases can run 3, 5, or even 10+ years, it’s difficult to know when prime space will become available. Your agent will be aware of when these desirable locations will be back on the market, and has access to industry websites and listings that are unavailable to the public, thanks to their connections and resources.
3. They Understand Business: Every business requires a different space. Your agent will take what’s important to you and your business and show you the best available options. Your agent will take into consideration any restrictions or limitations so you don’t end up viewing properties that won’t be conducive to your business.
4. They Understand Your Lease: Leases come in several forms, and your agent can help you understand what they mean. For example, a Triple Net Lease, which is typical for industrial or warehouse spaces, is a base rent plus the cost of taxes, insurance, maintenance and utilities. If your landlord provides a Gross Lease, which is commonly used for office space, that lease includes all costs, while a Modified Gross Lease may include all expenses except for utilities. Your agent will explain all the terms and conditions to you, so there are no surprises when your first month’s payment is due.
Landlords often use their own in-house leasing agents, or use a third-party leasing agent, so it makes sense to get your own representation during the process. Work with your commercial real estate agent, and they will help find you the right space for your business!
Stephen Fitzmaurice has over 30 years of experience running commercial building ranging in size from 300,000 square feet to over 1.5 million square feet. Over the years, he produced over 150,000 square feet of new leases and lease renewals. Steve is a graduate of both the Hotel School at Cornell University and UB's Center for Entrepreneurial Leadership Core program. e has served on various boards, most recently as a Director at Buffalo Place from 2002 through 2014. You can reach him at email@example.com.