A property management company will offer services that can vary depending on the company, the type of property and your specific needs. When deciding which company with which to work, ask the property management company what services it will provide you. Once you make your decision, you should confirm that you have the an agreement on the terms in the lease. The lease agreement should be comprehensive and outline the services and what the services will cost.
Here are some of the services commercial property management firms will typically provide:
Finances & Bookkeeping. Financial record keeping and reporting are integral services provided by your property management firm.
Strategy. A commercial management company can develop a marketing strategy and analyze the current business conditions in your area, and for your property.
Budgeting & Forecasting. The property management firm develops and monitors the property's budget, including the maintenance, marketing, personnel to operations.
Maintenance. Commercial property management companies provide monthly maintenance, and preventative maintenance programs.
Marketing Programs. Firms can develop and implement marketing programs including such marketing materials as brochures, advertisements, events, property newsletters, and signs.
Market Rent Analysis. Management firms will provide an analysis of market rents and those of the competition, changes in area demographics, and anticipated absorption levels.
Rent Collection. The property management company will handle the collection of rent.
Lease Negotiation. The commercial property management company will negotiate tenant leases and renewals.
Tenant Liaison. The professional property management firm acts as a liaison to the tenants, responding to tenants' needs and addressing concerns immediately.
Upgrade and Build-Outs. Commercial property managers handle and supervise all contracted work (such as tenant build-outs).
Compliance. Commercial management companies maintain documented procedures to ensure compliance with all federal, state, county, and local governmental regulations, ordinances, and fire, health, and safety codes.
Showing posts with label build out. Show all posts
Showing posts with label build out. Show all posts
Sunday, June 28, 2009
Tuesday, June 2, 2009
Tips for Negotiating a Commercial Real Estate Lease
Dear Property Manager,
My husband and I are considering buying a franchise. We have both owned small businesses before, but we do not know anything about negotiating a commercial lease, what we can ask for, what is included, what are our responsibilities, etc. Can you give us a few pointers on commercial property leases?
Mary K.
Fort Mill, SC
Dear Mary K.
Depending on the type of franchise, the area director for that company may very well be able to assist you in finding a negotiating the commercial lease. Commercial tenants almost always look to their landlords to provide them more than just the right to occupy space. Landlords, (and/or the property management companies) frequently provide a number of services. The landlord may "build out" the leased space for the tenant's specific use--creating the look and feel you want and the functionality you need to run your business.
Commercial property owners will also probably provide heating and air conditioning, cleaning, utilities, and telephone and Internet services. Maintenance and repair of the leased property and the surrounding premises including the parking lots and common areas are also generally the landlord's responsibility. This includes the parking lot, pothole repair, lawn and landscape, elevators and security. These are all things that should be clearly spelled out in your lease agreement.
Now, your responsibilities is probably no more than keeping the space well maintained and paying for use of the leased space and the bundled services--and doing so on time!
To have some assurance that a tenant gets what it was told it would get and what it is paying for, every commercial lease should at least:
State in detail landlord's responsibilities to tenant. Things like when the heating and air conditioning will be on and how the property will be kept secure.
Describe what happens if the contract is broken. The lease should define what constitutes a default by the landlord and/or the tenant, as well as provide a method for a quick, inexpensive and final resolution to any disputes.
The best advice is to read the lease thoroughly and go over it with your real estate attorney. A tenant should be sure that these issues are addressed in a proposed lease to avoid any future questions or disputes.
Best of luck, and please contact Kuester if you would like to know what properties may be available in the Fort Mill area.
Property Manager
www.kuester.com
My husband and I are considering buying a franchise. We have both owned small businesses before, but we do not know anything about negotiating a commercial lease, what we can ask for, what is included, what are our responsibilities, etc. Can you give us a few pointers on commercial property leases?
Mary K.
Fort Mill, SC
Dear Mary K.
Depending on the type of franchise, the area director for that company may very well be able to assist you in finding a negotiating the commercial lease. Commercial tenants almost always look to their landlords to provide them more than just the right to occupy space. Landlords, (and/or the property management companies) frequently provide a number of services. The landlord may "build out" the leased space for the tenant's specific use--creating the look and feel you want and the functionality you need to run your business.
Commercial property owners will also probably provide heating and air conditioning, cleaning, utilities, and telephone and Internet services. Maintenance and repair of the leased property and the surrounding premises including the parking lots and common areas are also generally the landlord's responsibility. This includes the parking lot, pothole repair, lawn and landscape, elevators and security. These are all things that should be clearly spelled out in your lease agreement.
Now, your responsibilities is probably no more than keeping the space well maintained and paying for use of the leased space and the bundled services--and doing so on time!
To have some assurance that a tenant gets what it was told it would get and what it is paying for, every commercial lease should at least:
State in detail landlord's responsibilities to tenant. Things like when the heating and air conditioning will be on and how the property will be kept secure.
Describe what happens if the contract is broken. The lease should define what constitutes a default by the landlord and/or the tenant, as well as provide a method for a quick, inexpensive and final resolution to any disputes.
The best advice is to read the lease thoroughly and go over it with your real estate attorney. A tenant should be sure that these issues are addressed in a proposed lease to avoid any future questions or disputes.
Best of luck, and please contact Kuester if you would like to know what properties may be available in the Fort Mill area.
Property Manager
www.kuester.com
Wednesday, May 20, 2009
Commercial Lease Terms
Dear Property Manager,
I have decided to take my home-based book-keeping, and virtual assistant business and move it into a small office. My problem is I don’t know any of the “lingo” or what the clauses in the commercial lease contracts mean. Is there a place I can look or a list of the most common commercial lease terms?
Thank you for your help –
Madeleine Y.
Boone, NC
Dear Madeleine,
Here are some important terms with which you will need to familiarize yourself before signing your commercial lease, however, you will also want to work with a real estate attorney, who will assist you in getting the details of the contract right for you.
Use Clause: How the space can and cannot be used. Ask any question if this is unclear, and make sure that this clause is as fair to you as well as to your new landlord.
Exclusive Clause: Limits competing businesses from opening up in the same complex, or next door, if the landlord owns the other property/spaces in the immediate vicinity.
Premises: The premises should be defined clearly to be just the building, or space, or also include the parking lot or facility, bathrooms, kitchen, etc and spell out common areas shared by other tenants.
Parties: “Parties” refers usually to the landlord and tenant, (“lessor” and “lesee”) and should specifically name you in the contract. (Make sure to verify the names for correct spelling, etc.)
Term Clause: The length of your lease and specifically the starting and ending dates. This should begin after you have all necessary insurance and are ready to start business, not necessarily on the day the contract is signed.
Rent: Specifically states rent, and if it isn’t otherwise state should include improvements and maintenance costs if you are responsible, as well as rate increases or the “fixed rate’ cost.
Security Deposits: What amount you are required to give the landlord as a deposit. This is a safety measure for the landlord in case you miss a payment, or break an agreement, such as the state of the space, (maintenance needed) after your move out. If there are no issues, then this amount will be returned to you, unless otherwise stated.
Build-outs (Improvements and Alterations): If your new space will have to be customized to fit your needs, the lease should address this. The landlord may require an agreement about who does the design, contractors, timeline, payment, etc. This is important if your space isn’t move-in ready.
Insurance Clauses: Your landlord may require a specific kind of insurance (property, liability, rental interruption, and/or leasehold), to insure against things that are beyond their control (and sometimes yours). You will want to discuss your specific needs with a business insurance broker.
Other Clauses: Parking, Signs, Landlord’s Entry, and Security: There will (or should) be several paragraphs about whether you can put up signage, and the requirements there-of, as well as when and how the landlord can have access to your space, where you and your staff and customers can park, and the security of the property.
The key to successfully leasing a commercial property is to review all of the possibilities with an experienced attorney. Ultimately, you want to avoid surprises. Try to ensure that all of your business needs are covered and that you can run your business comfortably for the term of the lease.
Good luck and remember that your team (accountant, broker, commercial real estate agent, and attorney) will be vital to finding the right property and negotiating the right terms for you and your business. Make sure you heed their advice, or seek a second opinion if you are unsure. Signing a commercial lease is a big responsibility, and can ultimately lead to the success of your business.
If you would like to talk to one of our commercial property specialists in your area, please call our Boone, NC office at 803.578.7725.
Property Manager
Kuester: Boone, North Carolina
I have decided to take my home-based book-keeping, and virtual assistant business and move it into a small office. My problem is I don’t know any of the “lingo” or what the clauses in the commercial lease contracts mean. Is there a place I can look or a list of the most common commercial lease terms?
Thank you for your help –
Madeleine Y.
Boone, NC
Dear Madeleine,
Here are some important terms with which you will need to familiarize yourself before signing your commercial lease, however, you will also want to work with a real estate attorney, who will assist you in getting the details of the contract right for you.
Use Clause: How the space can and cannot be used. Ask any question if this is unclear, and make sure that this clause is as fair to you as well as to your new landlord.
Exclusive Clause: Limits competing businesses from opening up in the same complex, or next door, if the landlord owns the other property/spaces in the immediate vicinity.
Premises: The premises should be defined clearly to be just the building, or space, or also include the parking lot or facility, bathrooms, kitchen, etc and spell out common areas shared by other tenants.
Parties: “Parties” refers usually to the landlord and tenant, (“lessor” and “lesee”) and should specifically name you in the contract. (Make sure to verify the names for correct spelling, etc.)
Term Clause: The length of your lease and specifically the starting and ending dates. This should begin after you have all necessary insurance and are ready to start business, not necessarily on the day the contract is signed.
Rent: Specifically states rent, and if it isn’t otherwise state should include improvements and maintenance costs if you are responsible, as well as rate increases or the “fixed rate’ cost.
Security Deposits: What amount you are required to give the landlord as a deposit. This is a safety measure for the landlord in case you miss a payment, or break an agreement, such as the state of the space, (maintenance needed) after your move out. If there are no issues, then this amount will be returned to you, unless otherwise stated.
Build-outs (Improvements and Alterations): If your new space will have to be customized to fit your needs, the lease should address this. The landlord may require an agreement about who does the design, contractors, timeline, payment, etc. This is important if your space isn’t move-in ready.
Insurance Clauses: Your landlord may require a specific kind of insurance (property, liability, rental interruption, and/or leasehold), to insure against things that are beyond their control (and sometimes yours). You will want to discuss your specific needs with a business insurance broker.
Other Clauses: Parking, Signs, Landlord’s Entry, and Security: There will (or should) be several paragraphs about whether you can put up signage, and the requirements there-of, as well as when and how the landlord can have access to your space, where you and your staff and customers can park, and the security of the property.
The key to successfully leasing a commercial property is to review all of the possibilities with an experienced attorney. Ultimately, you want to avoid surprises. Try to ensure that all of your business needs are covered and that you can run your business comfortably for the term of the lease.
Good luck and remember that your team (accountant, broker, commercial real estate agent, and attorney) will be vital to finding the right property and negotiating the right terms for you and your business. Make sure you heed their advice, or seek a second opinion if you are unsure. Signing a commercial lease is a big responsibility, and can ultimately lead to the success of your business.
If you would like to talk to one of our commercial property specialists in your area, please call our Boone, NC office at 803.578.7725.
Property Manager
Kuester: Boone, North Carolina
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