In this fairly dry, third in a series of three, article, we start off by explaining how deals in CRE are arrived at. Then we move into pragmatic questions to ask / info to know around hidden expenses, offers to lease, tenant installation allowances, beneficial occupation, moving costs, gross and net rental comparisons, deposits and guarantees, sureties, lease admin costs, indirect taxes (VAT), and CPA considerations.
Commercial property is an incredibly complicated industry. This article is second in a series of three aimed at industry outsiders. It hopes to simplify and demystify the process around signing a CRE lease agreement. It deals specifically with flexibility and feasibility questions to ask.
Getting this knowledge out into the open is good for the industry’s reputation, good for the talented professionals in it, and good for potential customers of the industry – such as tenants.
As the wise Benjamin Franklin said:
“By failing to prepare, you are preparing to fail”.
To avoid either egg on face or frustration, here is a list of relevant CRE lease agreement items to consider when evaluating new premises for your factory or warehouse, your office, or your shop.
We hope, in asking yourself, up front, questions that only take a couple minutes to answer, you are arming yourself with valuable information, and potentially saving yourself discomfort and frustration down the line.