Getting Tenants The Lowest Rents and Best Business Protection

6 Tips and Tricks To Get the Best Deal for Commercial Property for Lease in Toronto

Commercial Property For Lease In Toronto

"Subtle changes in the way you approach toronto commercial real estate for lease, and even small differences in the way you structure your office lease, can literally cost or save you tens of thousands of dollars.

Property Leasing Has Changed

Commercial Property for Lease in Toronto has changed significantly over the last few years making your options wider than ever. Subtle changes in the way you approach premise location and even small differences in the way you structure your office lease can literally cost or save you thousands of dollars and years of expense and can actually affect the viability of your business.

Get the Right Information About Commercial Property for Lease in Toronto

Whether you are about to negotiate a new commercial property for lease in toronto, renew a commercial property for lease in toronto or are planning to make a move to your next business location, it is critical that you inform yourself about the factors involved.

Industry research has revealed that there are 6 common mistakes that most commercial tenants make in negotiating commercial property for lease in toronto that can have a significant impact on the outcome of this critical negotiation. If handled correctly, these issues could result in a lease that will cost you less.

6 Things You Must Know Before Signing for Commercial Property for Lease in Toronto

Before you commit your hard earned dollars to monthly rental payments, consider these 6 issues. Effective consideration of these important areas can make your payments work much harder for you.

1. You can and should, allow enough time to search for Commercial Property for Lease in Toronto.

Allowing yourself enough time is easy, and can give you complete peace of mind when shopping for your new location or renewing your lease. There is no cost to you in starting early and this gives you the benefits of time leverage in a negotiation.

Some landlords are unethical enough to use time pressure against you, holding out until the last moment elements of the negotiation that could have been resolved earlier. When time is short and you must that they know will be resolved in their favour because you are under time pressure to close the deal. Depending on the size of your tenancy a new premises search should start at least six months prior to commencing business while a lease renewal should be started at least 9-12 months prior to lease expiry.

Remember that any leasehold build-outs always take longer than expected and that landlords tend to drag out lease negotiations to prevent you from finding an alternate location and increase the pressure on you to concede important points that end up putting more of your money in their pockets.

2. Know what monthly dollar amount you feel comfortable committing to Commercial Property for Lease in Toronto

Always pre-assess for yourself what monthly dollar amount you feel comfortable committing to. Do not let availability of space dictate your monthly rental payment. Taking too little or too much space even if it has a lower cost per square foot can affect your profits and even the continuation of your business. Many tenants have excessive costs because a landlord’s commercial realtor leases them more space than they need or can afford.

3. You should be thinking about your long term goals, and expected situation, to determine the type of lease that will best suit your needs

There are a number of questions you should be asking yourself before you commit to a lease. Is your income expected to change (up or down) in the near term, impacting how much money you can afford to pay to your landlord? Will you need more or less space during the lease term? The answers to these and other questions will help you determine the most appropriate lease term you should be seeking and the flexibility that you build into the lease term.

Don’t let a landlords agent talk you into a longer lease than you might be able to negotiate and be aware that there are clauses that can be negotiated into a commercial lease that can provide flexibility and protection against potential changes in your business or the business climate in general.

For example, tenants may want to negotiate “kick out clauses” that provide for you to terminate your lease before the end of your lease term if your business grows or declines and the landlord cannot or will not accommodate you.

4. Make sure you understand the differences between rentable and usable space and what standards the landlord is using to calculate your square footage

Make sure that you know ahead of time how much the gross up factor is for your space. Rentable space that you pay rent on can be up to 20% higher than the actual area you use. These two calculations can cost you thousands of dollars in rent so make sure you ask the proper questions.

The standard of measurement should be stated in the lease and provisions made to ensure that a calculation of measurement is provided to you by an architect or other measurement professional before the lease term commences.

Improper lease clauses regarding measurement can cost you money because typically about 30% of space is mismeasured and sometimes landlords insert clauses that allow them to increase your rentable area in the middle of the lease term.

5. Always negotiate for more than you think you can get.

Landlords typically quote rental rates higher than they think they can get. Don’t overbid by not being aware of rental rates in your area. One of the cardinal rules of canny negotiating is to ask for more than you expect to get. You can always go up in negotiations from your starting point but you can never go down. Your initial proposal should be an equal distance on the other side of your objective as their proposal. If the landlord offers $15 a foot and you want to pay $13 then make an opening offer of $11. Assume that you’ll end up in the middle. Track this and you will be amazed at how often it happens.

Don’t forget to calculate in any allowances and free rental periods and remember that there are innovative ways of increasing allowances and free rental periods by giving the landlord what he wants while getting what you need as a tenant. A savvy leasing consultant can slice the salami in a number of different ways. 6. Limit Operating Cost Increases

Landlords provide operating cost and tax estimates for the current year to the tenant in the lease proposal. In one case, a tenant faced operating costs and taxes 50% higher than the landlord’s estimates. He took his case to court and lost.

Try to control operating cost increases. It’s a good idea to cap future operating cost increases as operating costs have a tendency to grow faster than you’d like which can mean huge operating cost increases.

You should seriously consider dealing with a Leasing Expert Even When Renewing a Lease

Consider dealing only with a professional who specializes in consulting to tenants exclusively. Enlisting their services can make a significant difference in the cost and effectiveness of the lease you obtain, even if you are renewing your leases. For example they can often include clauses in your lease that make it more flexible to your space and lease term needs and they than the landlord’s estimates. He took his case to court and lost.

You should seriously consider dealing with a Leasing Expert Even When Renewing a Lease

Typically they have insider knowledge of rental rates and landlord inducements that can cut your leasing costs while allowing you to spend your time on making money in your business. Most often there is no cost or obligation to enquire about Commercial Property for Lease in Toronto. Good leasing experts will guarantee their services.

The value of Annual Percentage Rate depends on the principal loan amount, rate of interest, the additional cost etc. and it helps to find out which lender is offering a better interest rate and term. To learn more on APR visit mortgagefit.com.