Commercial lease properties are completely different in comparison to residential lease properties. There are many more factors to consider on top of what you or your company might expect, some of which are not easy to identify. For example, who is responsible for removing furniture the previous tenant left behind? If you share a floor with another company, are there areas you thought were common but are actually exclusively leased to the other tenant? Your property partner should know exactly what you are looking for and provide personalised service. The following tips will set any commercial tenant up for success, and may even include some things you haven't thought of.
Key Contract Considerations
Understanding the contract inside and out is the first step towards a successful leasing arrangement. A commercial contract will outline the factors most residential renters would understand like move in date, base rental per square metre and the timeline for rent increases, supplied infrastructure or utilities. But there are many extra factors in commercial leases, such as:
- Load area (the percentage of unusable space)
- Adjacency or anchor tenant clauses (the ability to break lease if another tenant pulls out, or excluding some industries or competitors from leasing in the building)
- Tenant improvements (what you are allowed to alter, and what responsibilities the owner carries)
It’s a tenant’s market and with so many commercial properties on the market you may be offered incentives. Negotiating and understanding these incentives can save a company a lot of money down the track.
It is important you feel valued as a tenant, so a commercial landlord who is willing to provide meaningful and tailored incentives is a sign of a promising relationship.
Fit Outs and Fixtures
As the saying goes, we are a product of our environment, and this is no different when it comes to office space and employee productivity. This means the desk arrangement, natural and artificial lighting arrangement, drawer space, kitchen facilities and all those other 'little' things are absolutely critical. When entering a commercial lease any existing furniture as well as the carpet, lighting, doors, air conditioning systems, ablutions and more are considered in negotiations. Before entering into a lease it is important to clearly set out what stays and what goes (and who pays for the removal), and what you as a tenant are allowed to alter during the lease.
For many companies the process of undertaking a commercial lease can be daunting and exhausting. Similar to renting a house or apartment there are so many to look at, only with commercial leases the terms and spaces are more complex. At Altegra Property Group we pride ourselves on developing healthy tenant-owner relationships. If you are looking to take on a commercial lease to suit a growing company, or if you want to source the right property, contact Altegra Property Group to find out why so many Perth businesses trust us with their commercial leasing requirements.