In the dynamic real estate market of southern Minnesota, making an informed decision is essential. Whether you’re a business owner looking to expand or an entrepreneur getting ready to launch your startup, renting commercial space is a significant decision. Ask the right questions before signing a commercial lease to ensure the property you choose aligns with your needs and goals. Here are the top questions you should ask:
What are the terms of the lease? Understanding the lease terms, including the lease length, rent, and escalation clauses, is a fundamental first step. Also, inquire about the terms for lease renewal to plan for the future.
What’s included in the rent? The rent can often include other expenses such as maintenance costs, utilities, or property taxes. Understanding what’s included and what’s not will help you budget effectively.
What kind of lease is it? There are different types of commercial leases, such as gross leases, net leases, and modified gross leases, each with their own cost structures. Knowing the type of lease will give you a clearer understanding of your financial obligations.
What is the condition of the property? Consider the physical condition of the property. Are there any necessary repairs or improvements needed before you move in? Who will cover these costs?
What modifications can I make to the space? Your business may require customizations to the commercial space. Find out if modifications are allowed and who is responsible for the cost.
How’s the location and accessibility? Location can significantly impact your business. Ask about foot traffic, parking facilities, accessibility, proximity to suppliers or potential clients, and any plans for future developments in the area.
Are there any restrictions on operations? There may be restrictions concerning operating hours, noise levels, and the type of business activities allowed in the space. Ensure these don’t conflict with your business model.
Who is responsible for repairs and maintenance? Responsibilities for repairs and maintenance can fall on the tenant, landlord, or they may be shared. Understand your obligations to avoid future disputes.
What are the conditions for lease termination? Understand the terms and conditions surrounding lease termination, including notice periods, penalties, and conditions that could result in a breach of contract.
Can I sublet the space? Subletting can provide additional income and flexibility. It’s important to check if your lease agreement permits it.
What happens if I sell my business? If you plan on selling your business in the future, you need to know whether the lease is transferable or if a sale requires the landlord’s approval.
At Bluewater Properties, we strive to support our clients through each step of their commercial leasing journey. Our team of experienced professionals is always ready to help you navigate the intricacies of leasing in southern Minnesota. Contact us today to explore the perfect space for your business.