What Does Your Commercial Real Estate Landlord Want to Know Before Leasing to You?
If you are looking to lease commercial real estate, you may have found a whole bunch of articles on the internet advising prospective tenants what they need to know about a commercial landlord. What you may not have seen a lot of, however, are articles advising the tenant what a landlord might want to know about them and their intentions for the space in question. A landlord has invested time, money, and energy into acquiring and maintaining their property, and therefore, they have a vested interest on the well-being of the space while it is in a tenant’s care. Understanding what questions they may have could help you to thoroughly prepare for the leasing process.
Your commercial real estate landlord is surely going to want to know what type of business you are planning on opening in their space. The reasons for this are varied. For one thing, they will want to make sure that the building is properly zoned for your industry, and you will want to make sure of this as well. Failure to use the property for its intended industry could result in big problems down the line. For another, they will want to ensure that you are operating a legitimate and legal business. Have any necessary licensing, certifications, and tax documents readily available for their review.
Plans for the Space
Your commercial real estate landlord may ask you if and/or how you are considering changing the space to make it more suitable for your long-term needs. Many landlords will entertain the idea of a renovation allowance during the lease negotiation process. Understanding how the property will need to change to support your business will help them to estimate how much of an allowance they may be asked to concede to. The best way to prepare for this question is to have a clear vision of how you could best utilize the property.
Number of Employees
You may wonder why in the world your commercial real estate landlord would care how many employees you have. Well, there are actually a couple of very good reasons. For one thing, every commercial space has an occupancy limit that will need to be considered. They will also want to make sure that their space offers adequate parking for your employees and/or patrons. If you plan on expanding your business during the course of your lease, they will also want to make sure that the space will be able to accommodate that growth.
Your Hours of Operation
Your commercial real estate landlord may also ask you which hours you plan on being opened. This will help them to determine what portion of the day the property will be occupied. Why is your landlord potentially interested in this? Well, the longer that you are on the property each day, the more sure they are that the space is secure. In other words, a business that only operates for a few hours a couple of days out of the week does not offer the same sense of security as a business that opens 7 days a week for 12-hour spans. Greater presence can help to avoid damages to the building from disasters such as flood, fire, or burglary.
Noise control may also be a factor here. If you are leasing a commercial space that is close to residential spaces, there will likely be noise ordinances in effect. Your landlord will want to ensure that your business will be able to comply with them.
Your Financial Security
Lastly, and most importantly, your landlord will want to feel confident when handing over the key to his/her commercial real estate property. They will want to know that you are financially able to uphold your end of the lease agreement for the duration of your lease term. They will likely determine the validity of this by running an approved credit check. The best way that you can help to reassure them of this is to know what is on your credit report and do what you can to fix it before your application to lease goes through. Additionally, have whatever financing you will need to secure the space completely lined up and ready to go so that once the process is underway it can be quick and efficient.
Looking for Commercial Real Estate in Tampa or the Surrounding Areas?
Whether you are a tenant seeking to secure a commercial space, or a landlord trying to locate the right tenant, you’ve come to the right place. John Milsaps has spent the past decade learning the ins and outs of the Tampa Bay commercial market. He specializes in both tenant and landlord representation, and utilizes his strong bonds with clients on both ends to pair the right tenant to the right landlord and commercial property. Let his decade of experience help you find your perfect match. Take a look through some of his available commercial properties, and contact him today to start your search!