Renting an office space is not as easy as many might assume. It requires a lot of efforts to search for ideal space. You just cannot visit a few offices and decide on the location that seems to be best in terms of cost. There are a number of questions that must be there in your mind while visiting the prospective office spaces.
Questions To Be Asked While Renting An Office Space:
- When was the office constructed?
- Does the individual suite has its own conference area or is there common facility for all the renters to use?
- What have been the estimated operating expenses of the current year and how are they passed on to all the tenants?
- What is the maximum duration to pay the rent? Is any late fee charged on exceeding the duration?
- Is parking available? Is it open or reserved? How much it cost?
- How is air conditioning managed?
- Is there any feasibility for tenants to expand their office into more space during the lease term?
- How is maintenance issue looked after, and who's supposed to be contacted for any sort of issue related to maintenance?
The Lingo Of Commercial Real Estate Lease:
Following are commonly used terms in commercial real estate lease:
- Term: Time-span of the lease or rent agreement, which is usually listed in months.
- Base Rent: Core element of the entire cost of the renting space. It can be permanent all through the term or can go up every year through an approved upon percentage.
- Rent: Rent includes base rent and other expenses such as maintenance cost.
- Concessions: Free rent, signage, parking and other incentives the landlord may possibly offer to allure the prospective tenant to sign long-term lease.
- Deposit: Initial payment usually required ahead of the beginning of the lease. Returned back at the closing stages of the lease unless any sort of damage occurs or any payable money is owed to the property owner.
The above-mentioned information can greatly help you to have a fair idea about the basics of Commercial Real Estate Lease. To have even better idea about the real estate leasing scenario, you can browse through varied real estate portals over the internet.