What Should an Owner Expect from a Leasing Agent
Leasing a commercial property is much more than simply placing an advertisement online. A professional commercial leasing agent plays a...
Selecting the right tenant is one of the most important decisions a commercial property owner can make to maintain the value of the property. While a strong rental rate is important, a reliable, stable tenant who pays rent on time, maintains the premises and commits to a long-term lease can provide far greater value over the life of the investment.
When considering a new tenant the highest rental offer isn’t always the best or safest tenant. A Landlord needs to consider the overall strength of the tenant and the covenant being offered. He/she must consider all of the following:
A slightly lower rent from a strong, established business may be a better long-term outcome than a higher rent from a business with limited trading history.
Before signing a lease, it’s important to conduct appropriate due diligence on the tenant. This may include reviewing:
For newer businesses, requesting personal guarantees or bank guarantees, additional security may provide greater protection.
Think about how the tenant’s business fits within the location and the surrounding area. A business that complements neighbouring tenants can increase customer traffic, improve the property’s appeal and contribute to long-term occupancy. This is particularly important for retail tenants as many rely on each other to produce foot traffic.
A well-drafted lease should clearly outline:
Having clear lease terms helps reduce disputes and protects both landlord and tenant.
Commercial leases commonly require tenants to provide security, one or more of the following:
Adequate security provides financial protection if the tenant defaults on their lease obligations.
An experienced commercial leasing agent can identify suitable tenants, conduct background checks and negotiate favourable lease terms. A commercial solicitor can then ensure the lease adequately protects your interests and complies with legislation.
Leasing a commercial property is much more than simply placing an advertisement online. A professional commercial leasing agent plays a...
Costs for Landlords Leasing a Commercial or Industrial Property to a New Tenant Securing a quality tenant is one of...
Leasing a commercial or industrial property involves more than simply paying the advertised rent. Depending on the type of property...
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