David Kirkpatrick

June 4, 2009

Commercial leasing 101 for small business

Filed under: Business — Tags: , , , — David Kirkpatrick @ 3:05 pm

Here’s a great set of tips from Business.com for small businesses about to enter into a commercial real estate lease.

From the link, the first tip:

Go for free rent
A typical commercial lease rate is based on a cost per square foot. But in a “buyers market” for retail space — when there are a lot of openings available — landlords commonly will offer free rent for a certain number of months as an enticement. They’d much rather do this than lower the cost per square foot because it allows them to show the higher lease rate on their books, and lock in that all-important rate for the future. It also allows them to tell other prospective tenants that space has been rented at a higher cost per square foot, even if the “effective” rate is lower due to the free rent.