Today, many businesses — especially startups — are going the co-working office space route for a variety of reasons, including cost and low lease commitment. However, there are also many business models and company structures which may not fit so well to open shared workspaces. In that case, a company may need to lease their own commercial property in order to obtain the workplace culture and atmosphere that is ideal.
Not all commercial property lease opportunities are created equal, however. Signing any lease involves some level of incurred risk, but it is important to know potential risk factors before making an informed decision. To help you review a potential commercial lease or purchase, we asked members of Forbes Real Estate Council to weigh in with key things lessors or lessees should look out for and why. Here's what they said:
1. Hidden Fees
2. Guaranteed Tenant Improvements
3. Lack Of Clearly Specified Goals
4. Maintenance And Repairs
One of the main things would be maintenance and repairs. These significant and unexpected expenses could be detrimental to a new or small business' bottom line. For example, a new commercial HVAC unit could cost between $4,000-$7,000 including installation. As such, tenants should try to negotiate a cap on their out of pocket or find a place where there is a warranty in place. - Catherine Kuo, Elite Homes | Christie's International Real Estate