Commercial property can be a great investment for business owners looking to expand their operations or start a new business. There are many benefits to leasing commercial property, including the potential for increased foot traffic, high visibility, and flexible lease terms. Location is also a key consideration when choosing a commercial property, as the right location can help to increase foot traffic and drive sales.
There are a variety of different types of commercial property available for lease, including retail and hospitality spaces, office and industrial premises, and more. Each type of commercial property has its own set of pros and cons, carefully choose the right type of property for your business needs.
When negotiating a commercial lease agreement, keep in mind key factors such as the length of the lease, the size of the space, and the terms of the agreement. It’s also helpful to have an experienced commercial real estate agent on your side to guide you through the process.
In this blog post, we will discuss the different types of properties available to the pros and cons of each option. Additionally, we’ll talk about why location can be key when leasing commercial property and how to find the right space for your business.
We will list 7 things you should know before considering a commercial property lease.
By the end of this article, you’ll be ready to make an informed decision about whether or not a commercial property lease is right for you!
Is Commercial Property a Great Investment?
Commercial property can be a great investment, but there are many factors to consider before signing a lease. Firstly, identify the different types of commercial properties available in Sydney and understand the pros and cons of each.
Office space is generally more expensive than retail or industrial space. Retail and hospitality spaces need to be close to their customers, and industrial space often requires access to transportation or storage.
Think about the long-term prospects of the neighbourhood where the property is located. Commercial properties in desirable areas tend to increase in value more than those in less desirable areas.
Finally, remember location is key when it comes to commercial properties. A business needing to be close to its customers will have different needs than one requiring easy access to transportation or storage.
What Are the Benefits of Leasing Commercial Property?
There are many benefits to leasing Commercial property. Firstly, Commercial leases are typically for a longer term than residential leases, meaning you can be sure your business will have a place to operate for several years. Commercial leases also tend to be more affordable than purchasing a property, and you don’t have to worry about maintaining the property or dealing with repairs, depending on your lease agreement.
A well-located commercial property will provide you with a regular income from rent and longer-term capital growth as the value of the property increases.
Why is Location Important for Commercial Properties?
Location can be one of the most crucial aspects to consider when leasing commercial property. Commercial properties can be found in many different areas, but the location of the property can determine the success of your business. Some things to consider when looking at a property’s location are:
- The surrounding businesses and what type of businesses they are. If the business is in a retail area, for example, it will most likely have more passing trade, mostly seeking retail premises than if it is in an industrial area.
- The population density of the area. A commercial property located in a busy area with a lot of people passing by will be more successful than one in a rural area.
- How easily customers can find the business. If the business is located in a hard-to-find spot, customers may not bother looking for it and will go to a competitor instead.
What Are the Types of Commercial Property Available for Lease?
There are different types of commercial property available for lease in Sydney. This article is concerned with commercial buildings; we don’t list spaces such as caravan parks or car parks.
The main types of commercial buildings in Sydney include:
Office Space is great for businesses searching for a place to work and meet with clients. It can be used for a variety of businesses, such as law firms, accounting firms, and real estate agencies.
Office space provides a professional environment for businesses to work in. This can give clients a good impression of the company and may encourage them to do business with your company.
Office space often comes ready-equipped with many amenities businesses need, such as conference rooms, meeting spaces, and photocopiers. This can save businesses time and money, as they don’t have to set up these things themselves.
Retail Space is perfect for businesses selling products to the public. It is usually located in busy areas with a lot of foot traffic.
Retail space is generally best located in busy areas with a lot of foot traffic, which means customers can easily find it and there is passing trade.
Retail spaces can also have amenities your business may need, such as display cases, storage space, and signage.
Hospitality spaces include bars, cafes and restaurants. Often fully equipped with the relevant equipment for your business. Location is key. You may want to be near retail, industrial or office areas, depending on your target market.
Industrial Space Industrial space is great for businesses requiring a lot of room to work. This type of property is usually found in industrial areas.
Industrial space is usually found in industrial areas. Businesses based in industrial areas tend to require good transport links for the delivery of supplies and to move their stock and completed products.
These spaces would normally have loading docks, office space, and storage space.
Some cons when leasing a commercial property:
– Leasing commercial space can be expensive, especially in big cities. This can be a deterrent for some businesses on a tight budget.
– For businesses with a logo or brand, including colour schemes, you will be responsible for decorating the property according to your brand. Depending on the lease agreement you may be responsible for removing your decorations when you end the lease.
7 Things to Think About When Negotiating a Commercial Lease Agreement
- 1. What is the average cost of a Commercial property lease?
Commercial property leases can vary in price depending on a number of factors. These include the size of the property, the location of the property, and the terms of the lease. Generally, commercial leases are more expensive than residential leases.
- 2. What is the minimum amount of time I have to lease a Commercial property?
Commercial leases can vary in length, but most leases are for a minimum of one year. If you are unsure about whether or not your business will be successful, try to negotiate a lease with a shorter term or a get-out option in case the business is not successful.
- 3. Can I renew my Commercial property lease if it expires?
Yes, most Commercial property leases have the option to renew. The landlord is normally happy to have tenants in the property for as long as possible. This will give you the security of knowing you will be able to stay in your current location for as long as you need.
- 4. How do I go about finding a Commercial property to lease?
You could try to find Commercial premises for lease by searching online. There are a number of websites listing Commercial properties for lease. Be sure to do your research and compare the prices and terms of different leases before signing anything.The best way to find Commercial properties for lease is by using a commercial real estate broker. Commercial brokers have access to a wide variety of Commercial properties, they should have local knowledge and they can help you find the perfect property for your business.
- 5. What are the most important things to consider when leasing a Commercial property?
When leasing a Commercial property, there are a few things you will need to keep in mind
- Location: Location is key when it comes to commercial leases. Make sure you choose a location convenient for your customers.
- Terms of the Lease: Make sure you understand the terms of the lease before signing anything. Ideally, go through the lease with your real estate experts. Be sure to ask about any hidden fees or costs associated with the lease.
- Length of the Lease: Be sure to negotiate a lease appropriate for your business. You don’t want to be locked into a long-term lease if your business is unsure about whether or not it will be successful.
- Renewal Options: Include the option to renew your lease if your business is successful. This will give you the security of knowing you will be able to stay in your current location for as long as you need.
- 6. How do I negotiate the terms of my Commercial property lease?
When negotiating the terms of your Commercial property lease, there are a few things you will want to keep in mind. Location, make sure you understand the terms of the lease before signing anything. Be sure to ask about any hidden fees or costs associated with the lease. Finally, be sure to negotiate a lease appropriate for your business.
- 7. Top Tip – Work with a reliable, local, professional real estate company.
This is highly recommended! Even experienced business owners should work with a good real estate company to find the perfect premises for them. They will have local knowledge and will know the best neighbourhood for your particular business, they will know the market and be able to advise on prices. Crucially, they will have done this many times before and can help you understand the lease agreement before you commit to it.
MGM MARTIN – Friendly, Experienced Sydney Property Experts
At MGM MARTIN, we are proud of our reputation as a premier real estate agent. Our experienced, friendly, professional team are always ready to help you find the best premises for your business.
Contact us today.