Are you considering leasing a restaurant or commercial space for your new business in Cobble Hill or another popular spot in NYC?
Before signing a lease, it's important to recognize that a commercial lease is often more complicated than a residential lease and requires a deeper understanding of laws and property-specific terminology and concepts.
In this blog, we're diving into all you need to know about leasing space in five easy steps. We'll cover everything from location to negotiation, so you'll feel 100% confident signing the contract and launching your new business in the Big Apple.
Commercial leases can be tricky legal minefields, and although the assistance of a property professional is recommended—doing your own deep research can help you avoid any adverse outcomes in the process.
After researching "buildings for lease near me," follow these five steps to help secure the perfect lease for your business and goals.
Studying the market is one of the fundamentals of commercial property research.
Use the following points as a guide for your analysis:
In addition to the physical aspects of the location, be sure to also research the average rent for leasing commercial space in the area. For this step, you can use comps (comparables) of similar-sized commercial spaces to yours or ask around at local real estate agencies and brokers.
Just as a property owner will be screening potential business owners who want to rent their space, you should follow up on the property owner and their rental history.
Use the following steps to help you research your potential landlord.
An experienced tenant broker can also help you evaluate a landlord before signing a commercial lease agreement.
During the research phase, look into building orders and zoning laws in Cobble Hill or other areas throughout Manhattan that could affect your operations.
Issues such as housing allocation, climate change measures, or parking restrictions may impact your business operations. So be sure to research carefully and understand that zoning laws can change over time.
Whether signing a commercial or residential lease, one of the most critical contractual components to have clear is the expenses, i.e., who pays what.
Some of the costs over-and-above the rent include:
Once you've got a clear picture of the costs involved in the agreement, follow up on how these costs will be determined and allocated. For example, a square foot measurement may determine electricity costs in communal office space, whereas higher rental payments may cover others.
At this stage, you may get into the finer details of a lease. Unless you're a property lawyer or professional NYC property group (like Verada), you may want to consider legal or professional assistance to review and finalize a commercial lease.
Some of the common negotiables in an NYC commercial lease include:
In addition, one of the critical points of negotiation will be the length of the occupancy. Generally, commercial property owners in Cobble Hill favor longer-term rental agreements—but make sure a lengthy agreement works in your favor, too.
Remember that signing a commercial lease for retail space differs from signing a residential lease for an NYC apartment. Verada helps business owners review these details (and more) when looking for the ideal space to rent.
Leasing commercial space can be an administrative and legal uphill battle. Still, by following the steps above, you'll be able to make a more informed and confident decision before signing on the dotted line.
The team at Verada is on hand to help you understand the processes and technical jargon that holds so many back. Reach out to our team today for expert insight on the commercial leasing process and to help find the perfect location for your new business!
Learn more about finding the ideal location for your business with our free resource, the "Guide to Choosing Your Next Retail Space."