Owning commercial real estate in the Orange County area can be profitable, but only if it attracts quality tenants. When it comes to renting retail space, this could present a challenge since it can be difficult to know what future tenants may want. Some want to build out the space to suit their needs while others want a move-in ready space.
Finding the right Orange County rental for a business is not always easy, and securing a good deal for it is not either. Negotiating a commercial lease requires attention to detail. Without careful reading and review, a prospective tenant might not get what is needed out of the space.
When it comes to renting property for a business here in Orange County or elsewhere, tenants have more freedom to negotiate terms with the owner of the property than in residential situations. This provides more flexibility and the opportunity to receive better terms. Before sitting down to talk terms with a potential landlord, it would be useful to understand the vocabulary associated with a commercial lease.
After being in a rental space for some time, an Orange County tenant may be comfortable and not want to move. If this is the case, a review of the original lease would be in order some months prior to its end. Starting to think about renewing a commercial lease sooner rather than later could save a tenant from accepting unfavorable provisions.
One of the primary decisions that a new California company needs to make is where it will do business. In the retail industry, this often involves setting up shop in a shopping center or mall. When it comes to leases in this world, property owners often want percentage leases from their tenants.
When Orange County business owners look for a space in which to do business, they may not find the perfect setup. For this reason, many prospective tenants like to include leasehold improvements as part of a commercial lease. These improvements can quickly get out of control financially, and careful consideration should be given to them.
We recently blogged about various considerations a business owner must account for prior to signing a commercial lease. However, commercial lease transactions are complicated, and books can be written (and have) on all of the ways a business must protect itself when signing a commercial lease. Below are a few more important items to consider.
Developers here in California and across the country have known for some time that they need to change their tactics when it comes to retail developments. Malls and shopping centers are no longer the retail meccas they once were. Thanks to online shopping, these establishments must adapt or risk completely losing their relevance.
California small business owners know how difficult it can be to find the right space from which to operate a company. Finding the right place at a price that works for the budget may tempt a business owner to move forward as quickly as possible, but it is prudent to be careful and cautious regarding the terms of a commercial lease. It is beneficial to first understand the different types of commercial leases before signing.
These days, new business owners here in California and elsewhere make sure they have an online presence. They know that this will be an important part of their business. However, if they plan to work out of a retail space, they need to be sure that they choose the right location, which requires some consideration.