One of the most difficult aspects of launching or expanding your business is finding the right location that serves your needs and is actually available to lease. Even once you find something that seems perfect, you may run into a further dilemma — zoning. Not all buildings allow all kinds of businesses to operate in them, and if you're not careful when researching a property, you might end up with a lame duck of a lease on your hands. It is crucial to fully understand the zoning laws that affect your lease location to ensure that your business can freely operate and flourish there.
As a business owner operating with a lease in a commercial property, there are many things that you must contend with that are beyond your control. These may be trends in shopping, the relative popularity of your location and competitors in your area, among others. Of course, when it comes to relationships that may have the greatest affect on your business's success or failure, one looms large above the rest — your relationship to your landlord. Even when the functional relationship with your landlord is tenable, troubles that the landlord faces can have a way of rolling downhill. If your landlord is facing bankruptcy, you must stay vigilant to ensure that your business is not caught in the conflict.
Most people understand that businesses need a place to conduct their business. Therefore, signing a commercial lease is one of the most important decisions that a business will make. These often have significant financial and legal ramifications that people need to understand fully before committing. When negotiating a commercial lease, there are a few important factors that people should keep in mind to avoid making some of the common mistakes that can plague a business down the line. For more information, check out some of the most common mistakes in commercial lease negotiations below.
Tenant rights are an important area of legal protection, because tenants often are the party with far less leverage to negotiate fair treatment than landlords. A major step forward for tenant rights is being challenged in the Bay Area that could have wide-ranging effects for tenant rights throughout several sectors in California. A recent rent control measure in Richmond, which enjoyed high levels of support from voters, is being challenged in the court by a heavy-hitting lobby group representing landlords.
The commercial real estate world is almost certainly going to experience some major seismic shifts over the next few months and years, if early indications about the directions the Trump administration will take legislation and industry regulation hold true. It is, of course, impossible to know exactly how it will all shake out, but there is plenty of evidence to suggest that interest rates that have remained at near-rock-bottom for several years will probably begin to creep back upward. Furthermore, the very nature of commercial lending may be migrating its venue significantly.