The world of commercial leasing is full of renters that might be looking for space to grow their business. This differs in a huge way from residential leasing as eviction and tenant demands are going to be very different. The first difference is what the renters are looking for which is going to depend on the kind of office space you are renting. Some offices need to have warehouses connected while others need to be in the hub of a certain industry. The most important thing about investing in one of these properties to rent out in the future is that of picking a desirable area for commerce. There are commercial real estate firms in San Diego and other booming metropolises if you are having trouble deciding what the best investment will be. The following are things that plenty of renters who rent office space look for.
Perks Which Make The Space Unique
It seems like every single startup that is trying to be trendy wants to set themselves apart with their office. This could mean having a full gym somewhere on the premises or a basketball court where company leagues can be held. All offices are going to have bathrooms and a mostly open concept as they try to maximize the space instead of segment it like residential properties. Having office space for lease does not automatically generate interest in a certain property so you are going to have to do this yourself or through a commercial real estate marketing company. Buy unique but functional spaces when it comes to offices as each company wants to stand out from others whether it is through office space or services performed.
Good Part of Town
Location is everything when it comes to certain industries like finance or advertising. Clients do not want to go across a city or state in order to have a meeting with a company that performs the same quality job at the same price as a company that is closer in proximity. Not all industries depend on face to face meetings so this is also important to note. Avoid investing in parts of town where the crime rate is high and the amount of disposable income is low. Renters do not want to worry about their supplies and inventory of their products being in danger for fear of theft. Up and coming parts of town can get you the best return as trendy neighborhoods and sections of cities are hotspots for startups and younger staffed companies. Oakland just outside of San Francisco is a great example as the area is being gentrified due to San Francisco running out of space and pricing being too high.
Good Lease Termination Terms
The hard truth about running a business is not knowing whether it will be a success or not. The proper vetting of renters can help lower the possibility of early terminating leases but cannot eliminate it completely. A company that declares bankruptcy can be very hard to bill for rent especially if a founder has moved or the primary person who was involved in renting has left the company or was terminated. Fair lease terms being terminated can be a few months’ worth of rent or it can be terminated if the business has found another qualified renter for the space. In areas where startups are plentiful the lease termination agreements must be well drawn out as some of these businesses can crumble right after they move into the building. Doing the part of researching those renting the commercial space could not be more important.
Thinking in terms of the renters in office spaces can help you fill up all of the office space you have. Vacant offices are costing you money so try to keep 100 percent occupancy to the best of your ability in the next 6 months of this year!
