Raising Questions Will Get You a Good Deal and Also Give You Confidence
Never be shy about asking questions. Property Managers who work with new enterprises understand that as a rule of thumb start ups desire more handholding. They should welcome your curiosity and desire to know how leasing works.
Prospective tenants frequently depend on me to deal with the full process and take the lead. They even look to us for advice about marketing their business. They are looking for a full-service package, not only a guy to show them space and get a signature.
A common question is about calculating the monthly lease. Simply take the cost per square foot and multiply it by the amount of sq. feet,. feet, and then divide by 12. Example: $16 per square foot x 700 square feet = $11,200. Divide that by 12 to get $933 per month.
You should really know the most notable difference between a gross and net lease. A Net lease is just the base lease of the physical space you'll occupy, plus your share of the common space, eg: hallways, conference rooms, and so on. Basically areas that all renters use, but are not directly in the rented space.
Your monthly cost will include the base price, plus utility costs, property taxes and operating expenses. Always ask for the gross rate, which is the overall cost, so you won't get any surprises otherwise an attractive $9 per square foot lease rate can quickly grow to $16. Its better to ask up front instead of finding out after you have driven across the city to see space you can't afford.
Terms, naturally, drive the cost of rent. If you'd like to customise the space, or get new carpet or paint, you should be prepared to make a longer term commitment to the building. Month-to-month terms get you as is space.
If you do a one to three year lease, you can expect fresh paint and a standard selection of new carpet. Going with a three to five year lease gets a custom build out where walls get moved; custom paint and carpeting are also a part of this package.
With a longterm lease, you get a lower monthly rate and you can lock in that rate. Shorter term leases will bring increased rates come renewal time. As your business matures, plan on going to a long term lease as fast as you can.
If you would like assistance with your leasing needs please check out our list of commercial space for lease in Minneapolis St Paul MN.
Never be shy about asking questions. Property Managers who work with new enterprises understand that as a rule of thumb start ups desire more handholding. They should welcome your curiosity and desire to know how leasing works.
Prospective tenants frequently depend on me to deal with the full process and take the lead. They even look to us for advice about marketing their business. They are looking for a full-service package, not only a guy to show them space and get a signature.
A common question is about calculating the monthly lease. Simply take the cost per square foot and multiply it by the amount of sq. feet,. feet, and then divide by 12. Example: $16 per square foot x 700 square feet = $11,200. Divide that by 12 to get $933 per month.
You should really know the most notable difference between a gross and net lease. A Net lease is just the base lease of the physical space you'll occupy, plus your share of the common space, eg: hallways, conference rooms, and so on. Basically areas that all renters use, but are not directly in the rented space.
Your monthly cost will include the base price, plus utility costs, property taxes and operating expenses. Always ask for the gross rate, which is the overall cost, so you won't get any surprises otherwise an attractive $9 per square foot lease rate can quickly grow to $16. Its better to ask up front instead of finding out after you have driven across the city to see space you can't afford.
Terms, naturally, drive the cost of rent. If you'd like to customise the space, or get new carpet or paint, you should be prepared to make a longer term commitment to the building. Month-to-month terms get you as is space.
If you do a one to three year lease, you can expect fresh paint and a standard selection of new carpet. Going with a three to five year lease gets a custom build out where walls get moved; custom paint and carpeting are also a part of this package.
With a longterm lease, you get a lower monthly rate and you can lock in that rate. Shorter term leases will bring increased rates come renewal time. As your business matures, plan on going to a long term lease as fast as you can.
If you would like assistance with your leasing needs please check out our list of commercial space for lease in Minneapolis St Paul MN.
About the Author:
Eli Russell is the Director of Sales and Leasing with JGM Properties in Minnesota. JGM Properties has several hundred tenants starting from a few hundred sq. feet up to thirty-thousand square feet. feet in 11 properties located throughout the Minneapolis St Paul metro area. The building locations are: Bloomington, Brooklyn Center, Eagan, Eden Prairie, New Hope, Plymouth, Woodbury and Waseca. Eli can be reached at 612-290-1037. For more info go to the JGMproperties home page. If you would like assistance finding Office, Warehouse, or Retail space anywhere in Minnesota complete our fast and easy online form for immediate assistance locating commercial space for rent.
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