Leasing commercial real estate can be a confusing process for most small business owners and entrepreneurs. Investments like these involve huge sums of money and one wrong move can prove to be a massive loss for the owner. Commercial real estate begins with the less expensive alternative of leasing office space instead of buying the space. However, certain tips must be kept I mind while leasing out commercial real estate

Firstly, you must work on developing a network of real estate brokers, experienced contractors as well as investors to help you find the best deal. You can also depend on the advice of the local professionals for leads and useful contacts. Reading city and local newspapers may also help you understand various aspects of the real estate market. Having knowledge of current market statistics will help you find an edge to look for the most feasible and profitable rent.

Secondly, you must make sure that the tenant to occupy the space is reliable. Always look for those clients who have reputable businesses and good creditor terms instead of falling for the best deal. Any damage to the property has the repairs handled at the owner’s end and the sum of money involved might be substantial. Hence, to have a tenant who breaks the contract, pays the rent late or manhandles your property may make the process problematic. The owner must remain a part of the business cycle of the building and must know the clients individually to build profit and avoid any instances of the investment collapsing.


Another thing the owner of commercial real estate must essentially keep in mind is the fees money. This includes the fee that has to be doled out as the accountant charges, the engineer fees, the brokerage, commission as well as the attorney fees. While all these amounts are negotiable to an extent, an experienced builder has an approximate idea of the costs involved. However, he must never hesitate to negotiate for a lower price. In most cases, to gain ongoing business, these people tend to lower their fee. With such large amounts of money involved in commercial real estate, to score a deal too is easily negotiable. However, there must never be any compromise on reading the terms and conditions of the lease agreement and to clear any doubts you might have immediately with the tenant as well as the real estate agent. In most commercial rental properties, the rent paid monthly might vary as there is rarely ever a fixed rent in leases which are supposed to run long term. This variation in the rent is generally based on the percentage increase in the Consumer Price Index.