The Beginner's Guide To Renting Commercial Space In Columbus, Ohio
Looking to rent commercial space in Columbus, Ohio? You’ve come to the right place! In this article, we will provide you with a beginner’s guide to renting commercial space. We’ll cover everything from finding the right location to signing the lease. So, whether you’re just starting out or you’re looking for more information, this blog post has got you covered!
What Is A Commercial Lease?
A commercial lease is a contract between a landlord and tenant for the use of the commercial property. The terms of the lease are negotiated between the parties and can be for any length of time, though most leases are for a term of one to five years. The tenant is typically responsible for paying rent, property taxes, and insurance on the property.
Types Of Commercial Leases
There are three main types of commercial leases: gross, net, and triple net.
The tenant pays a single, fixed monthly rent amount to the landlord. The landlord is responsible for paying property taxes, insurance, and maintenance on the property.
The tenant pays rent plus a portion of the property taxes, insurance, and maintenance costs. The amount the tenant pays for each of these expenses is specified in the lease agreement.
Triple Net Lease:
The tenant pays rent plus all of the property taxes, insurance, and maintenance costs. This type of lease is typically used for properties that are leased to a single-tenant, such as a retail store or office building.
What Are The Components Of A Business Lease Agreement?
A business lease agreement is a legally binding contract between a landlord and tenant. The terms of the agreement are negotiable between the parties, but there are some key components that should be included in every lease agreement, such as:
- The term of the lease (length of time the tenant will occupy the property)
- The amount of rent to be paid
- The responsibility for paying property taxes, insurance, and maintenance costs
- The location of the property
- The use of the property (e.g., office space, retail store, restaurant)
- The condition of the property
- The rules and regulations governing the use of the property
Key things To Remember:
As a tenant, you should be familiar with the terms of your lease agreement before signing it. Be sure to read the entire agreement and ask questions if anything is unclear.
It’s important to have a clear understanding of your business’ needs before you start searching for commercial space. Consider things like the size of the space, the location, and the type of lease that will best suit your needs.
You should always consult with an attorney or real estate professional before signing any lease agreement. They can help you understand the legal implications of the agreement and protect your interests as a tenant.
Total Occupancy Cost & Rent Reviews
When considering a commercial lease, it’s important to be aware of the “total occupancy cost.” This is the sum of the base rent plus any additional costs, such as property taxes, insurance, and maintenance. The total occupancy cost will give you a better idea of what your monthly expenses will be.
Rent reviews are periodic increases to the base rent that are specified in the lease agreement. These increases typically occur every one to five years and are based on factors like inflation or the market value of the property. Be sure to factor in rent reviews when budgeting for your monthly expenses.
Use Clause & Fit-out
The use clause is a section of the lease agreement that specifies the permitted uses of the property. This is an important clause to pay attention to, as it will determine whether or not your business can operate at the location.
The fit-out clause specifies who is responsible for any renovations or modifications to the property. Typically, the tenant is responsible for any interior modifications and the landlord is responsible for any exterior modifications.
It’s important to be familiar with these clauses before signing a lease agreement, as they can have a significant impact on your business operations.
By Nyttend – Own work, Public Domain, https://commons.wikimedia.org/w/index.php?curid=12521390
Lease Terms & Renewals
The lease term is the length of time that the tenant will occupy the property. Commercial leases typically have a term of three to five years, but shorter or longer terms are possible.
At the end of the lease term, the tenant may have the option to renew the lease for an additional term. The terms of the renewal (e.g., rent amount, length of term) will be specified in the original lease agreement.
It’s important to consider your business’ needs when choosing a lease term. If you’re not sure how long you’ll need the space, it may be beneficial to choose a shorter term so you’re not locked into a long-term contract.
If you’re leasing a larger space than you need, you may be able to sublet the surplus space to another business. The terms of subleasing will be specified in the original lease agreement, so be sure to review this section carefully before signing.
Subleasing can be a great way to offset the cost of your commercial lease, but it’s important to make sure that the other business is a good fit for your property. You’ll still be responsible for the property, even if it’s being used by another business.
Whether you’re a startup just getting off the ground or an established business looking to expand, it’s important to know your options when it comes to renting commercial space. That’s why we’ve put together this guide on commercial leases in Columbus, Ohio- so you can be armed with the knowledge you need to make the best decision for your business. If at any point you have questions or would like more information, don’t hesitate to give Synergy Work Suites a call. They’re happy to help!
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