Searching online for industrial and commercial properties through various portals or agency websites may give you an idea of what office space and warehouses are potentially out there to let and for sale, and what the current sales and leasing rates are, but that’s the easy part.

Making sure that the property you choose is indeed the right property and that you negotiate the best possible rate and sign the correct lease term is far more important.

Here are just some of the key considerations that we can assist you with:

Realistic market rentals in your area. Achievable rentals achieved as opposed to asking rentals.

Current vacancies. Both institutional and private. Not all stock is offered online by agents. Some stock is kept private to avoid an influx of other brokers listing or by request of the owner.

The correct length of lease. Do you sign a long-term lease to try and negotiate the lowest possible starting rental, or do you sign a shorter lease to give you flexibility?

Negotiating the best escalation rates. What escalation rate do you agree to? Is 9% on a 3-year lease too high? How about 8% on a 5-year lease? Will a landlord accept CPI linked escalation on a 10-year lease?

Tenant installation. What tenant installation can you achieve on your office space?

Beneficial occupation. Can you get beneficial occupation? How much do you ask for? Moving equals downtime for your business, you need to minimise the financial impact.

The fine print. What does gross rental include? Is there a special levy? What happens if rates and taxes increase during your lease? Who’s responsible for the increase?

Understanding types of rentals. Is it better to pay a gross rental or to sign a triple net lease and be responsible for operating costs directly?

Future-proofing your occupancy. What happens if you want to buy the property you’re leasing? What happens if someone else wants to buy the building? Will you be evicted, or will your lease stand?

Understanding your lease commitments. What happens if you need to exit your lease early? How is the cancellation figure calculated?

Outlining reinstatement policies. How does reinstatement work? If you installed a generator, for example, can you take it with you when you leave? What about the concrete slab you had built to install it on?

Clarifying deposit negotiations. How many months deposit should you pay? Should you sign personal surety to pay a lower deposit? What happens to the interest on your deposit? How soon can you expect it back when your lease ends?

Negotiating lease renewals. Your lease is about to expire, and you want to renew. What starting rental should you offer?

Unexpected purchase costs. You want to buy a warehouse. Will you be liable for transfer duty or VAT? What if you’re not VAT registered, do you lose that money? What is a zero-rated transaction, and does it apply to you? What are the other transfer costs?

Valuing your property. How is industrial and commercial property valued? How much is your property worth?

Demystifying cap rates. What’s a cap rate? Have cap rates gone down now that interest rates have dropped?

Preparing for the unexpected. Do you need a force majeure clause in your lease? How can it help you with a forced lockdown from another pandemic?

Your lease in layman’s terms. Understand your lease obligations in simple terms, including all the basic ins and outs.

Leave the stress of sourcing and negotiating your next property with us. Whether you’re leasing or buying, we can assist with the entire process while you focus on your business.