GNcareers, from Gulf News

Negotiating a lease on commercial space

Negotiating a lease on commercial spaceImage Credit: Supplied

The usual business success stories begin with hardships and uncertainty; however, a business' continued existence can be defined by little research. The quest for any venture begins with a broadened scope of careful preparation.

• Time – Selecting the premise to put up a business needs careful assessment. Take some time to decide on the location. Drive around your prospective and alternative sites during the day and night and check their visibility, parking area, foot and drive-by traffic, competitors and demographic data. Once you have zeroed in on a location, take time to study the tenancy contract and discuss with the landlord or agent the terms and conditions of leasing, rent escalations, subleasing (if allowed), modifications, maintenance and utilities. Know that getting the best deal requires thorough research.

• Cost – The location, size of the space, neighbouring tenants and available amenities are some of factors that affect a commercial space's leasing rates. To get the best value for your money, know the current market trends, identify whether you are looking for a short-term or long-term lease and find out the average rental rates in the location that suits your business requirements.

• Procedure – Whether it is a small, medium or large enterprise, launching a business can be crucially daunting. For honest, reliable and transparent assistance, select a RERA-certified real estate agent to create the best deal to your advantage. It is also advised to iron out the legal hurdles with a lawyer to close the transaction well.

As with any important undertaking, do not rush into a decision. Conduct proper research so you get the lease rate that suits your budget. After all, success starts from every painstaking effort.

Handy Hints:

• Consider maintenance, service and air-conditioning costs

• Arrange viewings for a range of properties within your budget

• Check space usage and practical issues including parking space

Check out the commercial hubs for creative businesses

Source: Alfred Ocianas, Special to Properties

The writer is a freelancer