Questions To Ask Your Commercial Realtor Before Signing A Lease

Are You in the Market to Rent a Commercial Property? Here’s What You Should Ask Your Realtor Before You Commit to Any Commercial Real Estate

Are you on the hunt for the perfect commercial property to rent? It can be a daunting task! From online window shopping to actually sitting down with a commercial real estate broker and committing to a lease, there are numerous steps involved in renting commercially zoned real estate. With property hunting comes questions, but fortunately for you, Lindner Properties has the answers! We are commercial real estate experts serving Columbia, Jefferson City, and Sedalia, MO, as well as Destin, FL. No matter where you are in the commercial property hunting process, we can help you understand precisely what to ask your commercial realtor before signing a lease.

General leasing questions to ask when shopping for a commercial property rental

Before committing to signing your commercial lease, it’s important to ask your realtor some general leasing questions. Gaining this foundational understanding will help you ask more detailed questions down the road and set expectations for how operating your business under a certain lease will work. Your realtor should be capable of answering these questions directly or collaborating with the commercial listing agent to confirm any details they are uncertain about in a specific lease. Remember, if your commercial real estate agent can’t address all your questions, it might be time to seek a more experienced commercial broker.

Are you ready to have your burning commercial leasing questions answered? Lindner Properties is prepared to provide answers! Let’s get started!

What type of commercial lease is available for this property?

There is a wide variety of commercial leases available to business owners, but the most common are full-service or gross leases, net leases, bondable net leases, and percentage leases. Each lease type has pros and cons, so it is best to understand what type of lease will work with your needs before you commit to one. 

A full-service or gross lease is exactly as it sounds–a lease where the landlord is responsible for utilities, insurance, taxes, and operating costs. These leases only require the tenant to pay base rent. A full-service or gross lease is perfect for new business owners who want to focus on their business rather than their leased real estate.

Net leases are slightly more complicated. You may have a single, double, or triple net lease. A single net lease is similar to a full-service lease but requires the tenant to pay certain costs in addition to the base rent. A double net lease will typically include your base rent, utilities, property taxes, and insurance. Finally, we have the triple-net lease. New business owners should be wary of this lease, especially if you don’t have a ton of flexibility in your budget to manage all operating expenses including maintenance and grounds work. 

You’ll assume a lot of risk with a bondable net lease. Similar to a triple net lease, a tenant will be responsible for rent and operating costs, with the addition of risk responsibility. If the building is damaged in a fire or flood, it will be your responsibility to pick up the pieces after. This type of lease is recommended for incredibly savvy business owners with hefty insurance.

Percentage leases are commonly found for properties zoned for retail establishments or restaurants. Besides paying your base rent, you will also be required to pay a percentage of your business’ gross income. This percentage will be determined during negotiations with the landlord before the lease is signed. This is when having a trusted commercial real estate broker and attorney by your side will come in handy. 

Understanding the type of lease you may sign will also help you determine what you are responsible for once you move in. Be sure to confirm who handles utilities, maintenance, insurance, and property taxes within the language of the lease before you sign in. Once you and the property owner or manager have signed, those terms will be practically set in stone.

How long does this lease last & is there room to negotiate the lease length?

Once you know the type of lease you may be signing, you need to know how much time you are committing to. Most commercial leases last three to five years. However, this number isn’t set in stone. Flexible commercial property companies will work with you to write a lease that has term lengths you are comfortable with. When thinking about the length of your commercial lease, consider your new business prospects or ongoing growth. Will you outgrow this space before your lease expires? Do you have positive projections for the next three years? While it may be difficult to consider a future where your business fails, it can help you determine the length of lease you feel comfortable signing. 

Is this commercial property zoned for the type of business I want to open?

One of the biggest obstacles in opening a business is ensuring that the property you rent is zoned for the business you want to operate. While there are three major zone types to consider — residential, commercial, and industrial — there are more specific districts you must be aware of when renting a commercially zoned property.  In Columbia, MO, there are seven types of district zones.

1. District O-1: Office District. Zoned for professional and administrative businesses between residential and higher traffic commercial zones. Approved businesses include financial institutions, medical clinics, offices, and more.
2. District O-2: Special Office District. Zoned for professional and administrative businesses between residential and higher traffic commercial zones. Approved businesses include banks, medical clinics, offices, and more.
3. District O-P: Planned Office District. Zoned for innovation and design flexibility to promote environmentally sound use. Approved businesses include financial institutions, public service and utility buildings, not-for-profit counseling centers, vet clinics, administrative offices, and more.
4. District C-1: Intermediate Business District. Zoned for commercial shopping and service facilities near residential neighborhoods. Approved businesses include any within the District O-1 classification, restaurants, barbers and salons, pet and grooming stores, retail stores, and more.
5. District C-2: Central Business District. Zoned for retail, services, offices, and public facilities. Approved businesses include bakeries, bars, arcades, government buildings, print shops, restaurants, and retail.
6. District C-3: General Business District. Zoned for automobile and recreation services. Approved businesses include bowling alleys, car washes, greenhouses, medical labs, and animal breeding.
7. District C-P: Planned Business District. Zoned for innovation and design flexibility to promote environmentally sound use. Approved businesses include those included in District C-1 and C-2, as well as light industrial use, plumbing or HVAC repair centers, and testing laboratories.

Will I have the option to paint or perform larger renovations on my rented commercial property? 

Your business should be a reflection of you, so it’s important you have the opportunity to transform your center of operations, even if you’re leasing. When viewing properties, be sure to ask your commercial realtor if you can make modifications to the property. Some property managers may only permit painting or minor cosmetic changes. However, many commercial properties allow tenants to make larger transformations including changing the layout of the interior and enhancing the exterior appearance. If you have big plans for your business, make sure you can actually realize them at your preferred property before you sign a lease. 

What amenities are included in my lease? 

Some commercial property rentals will have more perks than others. If you hate shoveling snow, tell your realtor you’d like a commercial lease with snow removal included. Don’t forget to specify whether snow removal includes parking lots AND sidewalks. Additionally, you can ask your commercial real estate agent about other perks like landscaping, provided maintenance, and more. Don’t forget that cheaper properties may mean fewer amenities, making it more difficult to attract customers. 

Will I share certain spaces like parking lots, sidewalks, & courtyards with other tenants? 

If your preferred commercial rental property is in a business or retail center, you may have questions about the space you share with other businesses. For example, will your business be guaranteed a set number of parking spaces or are they all up for grabs? Who rakes the fallen leaves on the sidewalks outside the businesses? If you’re not into sharing, a free-standing commercial property may be a better option for you. Outline your concerns with your commercial realtor before signing a lease on a property that makes operating there an inconvenience. 

What happens to my commercial lease if I have to move, sell my business, or close?

This is one of the most important questions you can ask your commercial realtor. Typically, if a business needs to close or move before the lease ends, there are two options for ending a commercial lease. The first is to reassign the lease to someone else. When you reassign a lease everything is transferred to the new lessee and the property is no longer your responsibility. You may also have the option to sublet the commercial property. In this case, the lease would stay in your name but the property would be used and paid for by another party. Carefully review the lease presented to you and know exactly what will happen if you can no longer maintain the lease. This can protect you down the road if you do need to move or close your business.

Can you negotiate a commercial lease before you sign it?

Unlike most residential leases, you have room to negotiate a commercial lease. Commercial landlords want happy tenants and are willing to compromise if it means filling their properties. Some things you may want to consider negotiating include the length of the lease, the ability to make modifications to the rented space, and who will cover certain expenses like utilities, maintenance, and repairs. A skilled commercial realtor will help you negotiate a lease to be perfectly suited for your business needs, so be sure to tell your real estate agent what you need from your lease and make sure it is included before you and the property owner both sign. 

After signing a lease, it can be difficult to renegotiate terms or make amendments. Both parties will need to be in agreement on the changes to the lease and both will need to sign an updated lease with the new modifications in place. Renegotiation is possible, but getting exactly what you want upfront is easier. 

Find the right commercial realtor who can answer your leasing questions through Lindner Properties 

Signing a commercial lease is a huge commitment for any business, but it can also be the first chapter in your success story! Being sure to ask the big questions before you sign can be a time and money saver, so don’t feel shy when it comes to getting answers. An experienced commercial real estate expert will happily work with you to avoid confusion and misunderstandings before signing a commercial lease and an even better commercial realtor will provide the information you need before you even have to ask! Ready to rent a commercial property in mid-Missouri or Destin, FL? Contact Lindner Properties' commercial property team! 

Our real estate experts have the background you need for a successful property hunt and can guide you through the process of finding the right property for your business. Learn more about our process and explore our available properties to start your journey today!

Lindner Properties is helping restauranteurs & entrepreneurs ask the important questions before they sign a lease for a commercial property in mid-Missouri

Are you planning to open a restaurant, office, or retail shop? You probably have specific questions we haven’t covered… yet! Check out our list of questions you should ask your commercial realtor about specific properties before you sign your lease! 

What to ask your commercial real estate agent before signing a lease for a restaurant

Opening a restaurant has its own unique set of challenges business owners must face before opening day. This includes having additional permits and the right safety equipment in place before you are cleared to operate. If you want to open a restaurant, ask your realtor the important questions before you commit to a lease.

Does this space have the proper safety equipment needed to open a restaurant? 

Every restaurant with an oven or stove needs to have a fire suppression system in place to prevent tragedies. They should also have safety measures in place for gas appliances, slip-resistant flooring, and more. If the property you are touring is missing any of these safety features, you must ask your realtor who is responsible for installing the features. Missing safety requirements could delay or even completely prevent your restaurant from opening, so ask these questions before you choose a location.

What should I ask my commercial realtor about before signing a lease for an office space? 

Are you looking for an office space with plenty of room for multiple team members and anything they may need to succeed? Ask the big questions first. Make sure the office you are considering leasing has the space, utilities, and access you need to please your clients and employees.

Does this commercial office space have enough room for my business to grow?

If you’re opening a service-based business like a counseling center, accounting firm, or law office, you’ll need several private offices within the property to give your team space to do their jobs. You should also consider the room you may need to grow. You might need to hire more people next year, and if you don’t have enough private offices for them to use, you may be forced to find an alternative office space. No one wants to feel cramped. Ask your realtor about the square footage of your potential office space and ensure it will meet your needs throughout the length of your lease. 

What are the most important questions I can ask before leasing a retail store?

Do you have a great idea for a retail business? Whatever you’re selling, it’s important to find the right space where customers can easily find you and shop. This includes having ample parking, enough storage for back stock, and a space where your employees can retreat for breaks. When opening a retail store, don’t forget to ask your commercial realtor the right questions before you sign your lease. 

Are there enough amenities provided in this commercial lease to make running my retail business easy? 

Parking plays a major role in customer satisfaction. If it’s difficult to find your shop or a parking space close to your doors, customers may be turned off by the inaccessibility. Ask your realtor about the parking available to your customers as well as signs that make it easier to find your business from the road. You should also ask about private amenities like employee restrooms, breakrooms, and parking. Your team won’t want to trudge through snow or take their breaks in their cars. Make sure the space you want to lease meets your customer and employee needs before you feel comfortable committing to it. 

Ready to Sign a Lease? Contact Lindner Properties in Mid-Missouri to Explore Our Featured Commercial Real Estate Rentals & Tenant Services

With your questions answered and your mind made up, it’s time to sign the lease, right? Not quite! Before you sign a commercial lease, make sure you understand everything about your lease and what the responsibility entails.

If you’re still in the process of finding a commercial property, contact us! Our commercial rental experts can help you find the right property for your business. Reach out today to start the process.