We recently wrote a post about the Most Important Factors for Retail Space Site Selection where we included a list of what to research when defining your retail space needs. At this point you have probably done all your due diligence, searched high and low and (fingers crossed) found your perfect retail space and are in the process of negotiating the lease. This is the fun part, right?
While we ask that question in jest as getting ready to sign on the dotted-line can be an exhaustive process, it can also be exciting and go smoothly…if you know what to ask.
In this article we hope to arm you with the questions to ask that fall under the “Make sure you totally, definitely know this” category. If you don’t’ want to spend the time to read this because you’ve devoted all your time into looking for retail space in Baton Rouge…give one of our Advisors a call and they will be more than happy to assist.
While the tenant is typically responsible for all maintenance that serves their space, it’s still one of the main aspects of a lease that can be confusing. Knowing information about maintenance can provide you with more availability to negotiate your base rental rate.
Who will be responsible for upkeep maintenance and repairs?
Make sure to specify these and have the landlord/owner provide an estimate of what the costs would average each month.
Are there addition fees or expenses associated?
Are you responsible for inside? Outside? Both? Never assume the owner will be paying any addition expenses for the property.
Depending on the space you lease, some utilities will be part of your rental rate and some won’t. You may be responsible for utilities based on a percentage or based on square footage, it all depends. Make sure you ask the below.
What utilities am I responsible for?
Water and sewer are typically included in your lease rate but do you know about gas, electric and trash removal?
How is utility usage assessed/defined?
Everyone is always looking at the tenant and their creditworthiness, but knowing the same about the landlord or owner is just as, if not more, important.
What is the financial standing of the owner/landlord?
In a fluctuating economy such as ours you need to ensure that you aren’t signing a lease in a property that is under any kind of financial hardship. This could leave you in the streets and without a lot of options. So, do some research and ask about whether the landlord is on strong financial footing, or if they have got themselves in some loan hot water.
Hopefully if you find out the answers to the above you will be in a much better circumstance when finally executing that lease and moving into your retail space. While knowledge it power, we always advise working with both a commercial real estate broker and attorney when signing any binding lease agreement. If you have questions, are looking to lease, or sell, retail space in Baton Rouge or surrounding areas we are more than happy to help. Give us a call at 225.367.1515 or send us a note here.
About Us – The team at SVN/Graham, Langlois and Legendre has over 99-years of combined experiencing helping clients across the Baton Rouge area get the most value out of their CRE investment. Contact one of them today with any questions you may have and start seeing the returns in a market that will make sure to give today, tomorrow and for the extended future. To reach us, you can call us at 225.367.1515 or you can send us a message on our website. You can also follow us on Twitter at @svngll or on Facebook.