Renting a commercial space or warehouse is considered economically beneficial for both the landlord as well as the tenant. It ensures steady returns for the owner of the property and is easy on the pockets of tenants, as compared to purchasing a commercial space. For owners of the commercial property, earning good returns every month is the prime focus rather than merely filling the space. This being said, there are many factors that need consideration before letting out commercial property. Right from knowing who the tenant is to their business brief and financial standing, it is important for landlords to be conscious of whom they are letting the space to. For tenants on the other hand it is important to know the authenticity of the owner as well as have basic information about the property.
Even though these days, information is available at our fingertips, it is extremely difficult for individuals to fish out sensitive but necessary information about the property, its owners and tenants. Here is when commercial real estate agents like ‘Manage Spaces’ come into the picture. Their prime duty is to mediate between both parties and help customers, as a result both landlords as well as tenants make informed choices. In this blog, we have put together a few of the most important things you need to consider while renting commercial property. Regardless, if you are a tenant looking to rent a commercial space for your business setup or a landlord looking to rent his/ her property, there is something for everyone.
Business-centric outlook: As a land owner it is utmost important to understand your property or the space you want to rent. Along with adequate knowledge of the space, it is a requisite to have an estimate of the rent you can receive from the property. Owners also require a fair idea of what businesses would benefit from their property. Along with different businesses thriving all around, there are many renting options depending on the type of property, its location, size etc. The options are endless and hence you need to have a holistic picture before finalising things.
For instance, if it’s an office space, are you planning to rent it to one business or would like to convert it into a co working space? Secondly what are the amenities that you are offering with the property? Are you planning to rent a fully furnished commercial space or the tenant needs to self-furnish it? The condition of the building and surrounding is also important as this would be a base on which the rent will be decided. Another important factor to look into before renting the commercial space, is to decide whether the owner wants to rent the space for a long term or for a short period.
Client-centric purview: Renting, like every decision needs to be given thought and deliberation. It is important for a tenant to know exactly what the landowner has to offer before committing or signing documents. They need to have all necessary information about the property as well as the owners before-hand. If there were occupants in that place previously, they need to know in brief about, what they were into and why they vacated the premises. This gives them a fair-minded opinion about what they are getting into.
Employee-centric overview: For tenants it is imperative to check for the facilities and utilities that the owner is offering. It is also important to focus on the surrounding area and the overall environment of the place. You can ask yourself questions like, Is the space safe for female employees? Is it safe to work late here? You will also need to consider water supply, electricity, internet connection, phone reception, eateries and restroom facilities. These things seem obvious, but are often overlooked.
As businesses grow, especially those that involve selling good or merchandise getting a bigger storage space along with an office becomes mandatory. At times like these, buying a warehouse might not be cost effective. To combat this issue, commercial real estate agents connect with owners and provide warehouses on rent. This is a simple and economical way in which you can increase inventory and not overstuff your existing setup.
Operational-centric: Another important factor while renting property is approachability. Is the commercial space accessible? Is it convenient for employees as well as clients to reach the location? Is there a bus stop or a train station close by or is there a sharing taxi/auto that employees can use to commute? Here it is also necessary to look at the cost of travelling because employees will need to spend an X amount of money on a daily basis which should not be a burden. The further the location the more time it takes to travel resulting in the reduction of productivity.
All being said renting as compared to investing in property is more profitable. But knowing what you are getting into and getting information from the right places is utmost important. With a real estate agent most of the things are taken care of and almost all questions are answered. They understand your needs and give customised solutions to suit your requirements.