While your business grows and expands, you may need to lease your first commercial space. Although it is exciting to own your own brick-and-mortar store, you must be aware of the common pitfalls that a lot of business owners make with their first lease. You should weigh your decision carefully and learn to negotiate your lease. The following are some mistakes you won’t want to make when leasing your first commercial space in Del Mar:
Failing to Work with a Broker
When it comes to real estate search, failing to tap the knowledge and expertise of a tenant broker is one of the mistakes that have serious ramifications. Brokers are familiar with the different office spaces available and know how to maximize value for you by negotiating a lower monthly rent and concessions. Landlords usually cover broker services, so there is no reason why you should not hire them.
Rushing Through the Process
Searching for Del Mar office space for rent can be time-consuming. Because of this, a lot of big companies will look for space at least a year before their expected move-in date. This allows for lots of time to whittle down your shortlist, negotiate the lease terms, and complete a build-out.
Not Leasing Enough Space
Brokers can also help you calculate the actual amount of space your business must lease. They will account for any planned increases or decreases in staffing as well as efficiencies that cloud-based file storage makes. With this, your company does not have to pay for space it will not use while making sure there is enough square footage available to accommodate growth.
Failing to Read the Fine Print
Although a lease lets you stake your claim on a certain space, it can trap you in an environment that does not live up to expectations, particularly when you cannot sublet or assign your lease to another company. Also, leases dictate everything from how you will be allowed to use and improve the space to rent escalations and renewal or expansion options. Therefore, you must understand the terms you will be agreeing to before you sign the lease agreement.
Not Considering Other Factors Beside the Cost
The cost may help you decide when choosing a commercial space for rent. However, it should not be the only deciding factor. You should also consider what is convenient for your clients, your current, and future employees. Are there non-negotiable essentials? These may include access to public transportation. You must prioritize your wants and needs as well as weigh them against the cost of office space in various buildings and neighborhoods. This will help you find a space that is economically and operationally viable.
Not Paying a Full Year Up Front
A lot of business owners think that they just lease a big building, put a sign on the door, and then consumers will buy their products. But, remember that real estate businesses are not made that way. Ensure you can pay at least a year’s worth of rent upfront. You may have to forego leasing for now if you don’t have the funding to cover this.