For those who actively seek commercial real estate space, chances are there are a lot of other issues on your mind than just executing a lease. When relocating, expanding or establishing a business there are always hundreds of fires to put out that require consideration. Although securing the right space to ensure success is a top, if not the top, priority, business owners don’t always have the full attention needed to seamlessly execute a lease agreement. This very reason is why professionals exist.
From finding space for lease to negotiating, analyzing and preparing the contract, CRE brokers are just one part of a team of experts who ensure a properly executed lease that protects the best interests of their clients. Even though you should always use an expert before signing any legally binding agreement, when investing in commercial real estate it helps to know the biggest mistakes to avoid. Below we outline the worst missteps when securing space for lease to help you avoid them in the future.
[bctt tweet=”Be happy in your new #CRE space, not miserable. Avoid these 3 mistakes when leasing space. “]
Mistakes to Avoid When Leasing CRE
Not Listening to the Market
When searching for commercial space to lease there are two levels of due diligence that are vitally important: researching the market and the property. Of those two, the market conditions are always at the top of the totem pole since it doesn’t matter how amazingly perfect a space is if it’s in a bad location. Remember, the same property that is successful in one market can bomb in another.
From Baton Rouge to Lake Charles, every market is different, that is why conducting a comprehensive market report is so important. By thoroughly evaluating area demographic trends (population growth, income) and economic conditions (employment, area development) a leasee can determine if there is opportunity…or not.
Not Knowing the Property
Right behind the importance of market research is property research. This ensures that you find space for lease that both meets to your needs and is cost effective. Main items to consider include use, physical location, condition and price. Out of these the physical location is definitely the most important. When deciding on a space for lease pay attention to the ingress/egress, traffic counts, proximity of of area competitors and points of interest.
Below find some common questions when considering space for lease:
- What is the property currently used for?
- What can/can’t it be used for?
- What kind of rent/income does the property currently generate per year?
- What kinds of taxes are there on the property?
- What things will need to be replaced or repaired soon?
- Why is the owner selling?
- How is the area around the property doing? Any major upcoming changes
Not Asking Lots of Questions
You’ve heard the saying, “knowledge is power”? The first step to securing the best commercial space for your business needs is due diligence and research. That starts with asking lots and lost of questions. If you need some direction, like the questions above, see this very thorough commercial real estate checklist that covers everything you could ever want to, and may not want to, know about the asset you want to lease.
Avoid Mistakes with an Expert
Leasing commercial real estate can be a complicated process. In order to ensure that you receive the maximum benefits from your real estate investment you should always hire an expert who can guide you through the entire process from finding the best property to negotiating the lease. If you need help finding space for lease in Baton Rouge area contact one of our local experts today.
[bctt tweet=”The 3 mistakes you must avoid when leasing #CRE. “]
About Us – The team at SVN | Graham, Langlois & Legendre has over 99-years of combined experiencing helping clients across the Baton Rouge area get the most value out of their CRE investment. Contact one of them today with any questions you may have and start seeing the returns in a market that will make sure to give today, tomorrow and for the extended future. To reach us, you can call us at 225.367.1515 or you can send us a message on our website. You can also follow us on Twitter at @svngll or on Facebook.