The term commercial property is mostly used in business activities and it can widely refer to various types of real estate property. On a more detailed perspective, commercial property can refer to the building that serves as an office to your business; again it can as well refer to a piece of land meant majorly to generate profit through lease or renting for business activities. When talking about a commercial property we cannot forget to feature on the financial implications that come along with utilizing the property; also what the local authority laws in Queens, NY do state in regard to taxation of commercial property.
How to rent a Commercial Property
Do you wish to rent space for your warehousing, office suite or parking that satisfies your needs? The decision of choosing the appropriate commercial space calls for prior planning, research and forethought before you sign that lease contract. Nobody would like to rent a space only to find it less spacious for the business’s needs, right?
Similar to a residential property, renting a commercial property you have to pay rent. However, a commercial space might be complicated as there are running costs and other provision that might affect your business. The commercial lease or agreement document contains a lot of details characterized by many pages. Be keen to read all the details carefully, without making any assumptions that since it is a formal document it is always right. This document is guided by your states law to ensure it protects you and your landlord, so it is advisable to seek professional advice on that matter.
Should you Rent or Purchase Commercial Space?
Okay, many business owners may find it hard to decide whether to rent a commercial property or purchase the space in that commercial property. However, every business is unique in that it has a certain limit which it can pay for the monthly renting costs or purchase costs. It is necessary to consult with your accounts team so as to evaluate the current financial situation in order to determine a fair pricing for a commercial location. See if slightly exceeding the initial set budget in a bid to secure the best commercial location in Queens, will have any adverse effects on the normal business operations.
- Who Caters for Property Maintenance and Repairs?
Since the commercial lease may state that you keep the property in the proper state and well furnished, some rental companies will offer onsite maintenance personnel and management staff to assist in managing the commercial property. Look for a commercial property in Queens where the company offers clean-up services, and preparations on the commercial property. Take time to inspect the building before you make final plans to move in, of which it will enable you to ascertain its current state.
- Does the nature of the Commercial Property Fit your business type?
What rights does the lease grant you to enjoy? Does the lease specify terms on the usage of utilities like common parking space, reserve areas for example , the loading bay; also outline any restrictions on these facilities? In a commercial lease, you notice that one of the most important terminologies is the permitted use which specifies the applicable commercial use. Checking permitted use before you sign up allows evaluating if it is possible make a change of use so that it fits well with your business activities.
- Does the review clause and obligation in a way allow for rent negotiations?
When renting office space, you should aim to check at the best pricing model taking into consideration the area your business requires in square feet. You might encounter a situation where the property’s landlord neither agrees to a bargain the price nor offers you discount on rental rates. In many states, there is always a VAT advantage for the landlord that can be of help in reporting the set price to interested investors.
- Is The Tenant Allowed to Serve a Notice?
There exists the break clause in the lease agreement that serves to show that you intend to terminate your lease period at an earlier time. However, the break clause features strict conditions to be duly met, failure to which may oblige you to have no choice but to continue with the lease. Make an evaluation of these conditions while you also note down important deadlines so that any notice you wish to serve has a good basis, so as not to get rejected.