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Kemang - Jakarta Selatan

Tips on Leasing Commercial Real Estate

Selasa, April 2nd 2019.

For some small business owners and entrepreneurs leasing commercial real estate can be a confusing process. These types of investments involve quite a bit of money and if you make the wrong move, it could result in a big loss for the owner. Today, most of the new commercial real estate begins by leasing office space. This is a less expensive alternative to buying a new space. Here are some tips on how to lease this type of real estate. The first thing that you should do is start to develop a proper network of experienced contractors, real estate brokers, and investors are necessary in order to find the best deal. You should also take the help of local professionals. They can provide you with useful contacts and leads. Read city and local newspapers so you can understand the different aspects of the real estate market. Having knowledge of the current market statistics will help you have feasible and profitable lease rent.

Now you need to find a tenant that is reliable. You should look for those that have a good business reputation. If some damages occur to the property, the owner will have to get it fixed. This means that they may have to pay quite a bit to make sure that the property remains in good condition. If you have a tenant that breaks contracts, mishandles the property, or pays late then this can become problematic. It is advisable for the owner to be a part of the business and for them to get involved with the building and the clients. If the owner becomes causal about the building and the clients then the profits and investment could collapse.

In commercial real estate you, the owner, should keep in mind the fees money. This can include the fees that your accountant charges, engineer fees, attorney fees, and brokerage commission, which all can be negotiable. You should never hesitate to ask for a lower price. Most of them will reduce their fees so they can guarantee your ongoing business. Large amounts of money are involved in commercial real estate transactions so deals can be negotiated easily. Make sure that you read the conditions and terms of the lease agreement carefully and if you have any doubts make sure that you immediately clear them up with the tenant and the real estate agent. In the rental property there is normally a change in the amount of rent paid monthly because it rare to have a fixed rent in leases that are long term. The amount of increase is generally based on the percentage increase in the Consumer Price Index.

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