If you’re looking to relocate your business to Altoona, Iowa, one of the most crucial decisions you’ll face is finding the right commercial property for lease.
Leasing a commercial space involves various considerations, from the type of contract you sign to the actual size and layout of the place, that can have a significant impact on your ability to grow and succeed. It’s imperative you do your fair share of research and due diligence.
With that being said, here are some of the most important steps you should take before signing a commercial lease, ensuring that you make an informed decision that aligns with your business goals.
UNDERSTAND THE TYPES OF COMMERCIAL LEASES
Before diving into the leasing process, it’s essential to familiarize yourself with the different types of commercial leases available. Each has its own implications regarding rent structure, maintenance responsibilities, and additional costs. Understanding them will help you negotiate favorable terms and choose the one that best suits your needs.
Here’s a quick high-level overview of each lease type. You can find more in-depth information about them in this article.
Before diving into the leasing process, it’s essential to familiarize yourself with the different types of commercial leases available. Each has its own implications regarding rent structure, maintenance responsibilities, and additional costs. Understanding them will help you negotiate favorable terms and choose the one that best suits your needs.
Here’s a quick high-level overview of each lease type. You can find more in-depth information about them in this article.
Gross (Full-Service) Lease:
- Landlord pays for most or all operating expenses.
- Higher base rent, but it’s the only cost for the tenant.
- Simplifies operations for tenants.
- Landlords have more control over maintenance.
Net Lease:
- Tenants pay some or all operating expenses.
- Lower base rent, but with variable payments.
- There are 4 general categories: Single Net Lease, Double Net Lease, Triple Net Lease, and Absolute Triple Net Lease.
Modified Gross Lease:
- A middle ground between gross and net leases.
- The negotiating parties determine how to cover expenses.
- Landlords typically cover property taxes, insurance, and common area maintenance.
- Tenants often pay for utilities, interior maintenance, and janitorial services.
DETERMINE YOUR SPACE REQUIREMENTS
It’s crucial that you consider the physical and operational requirements of your business when evaluating different commercial properties. Assess the layout, amenities, and infrastructure necessary for your business to thrive both today and in the future as you scale up your company.
Whether you require office space, retail space, or something else, being clear and realistic about the size and scope of your operations and growth potential will help you narrow down your search and find a suitable property. The last thing you want is to be contractually obligated to run your business somewhere that doesn’t support—or even worse, hinders—your ability to succeed.
ASSESS THE LOCATION AND MARKET
The old adage “location, location, location” holds true for commercial leases as well. Consider the proximity to your target market, accessibility, parking availability, and surrounding businesses—especially potential competitors. You’ll also need to research the demographics and economic climate of the area to ensure it aligns with your desired audience and business goals.
If you’re specifically looking for a commercial property for lease in Iowa, it would be wise to familiarize yourself with Altoona’s competitive market. In addition to its proximity to Des Moines, a fast-growing Midwest metro, Altoona holds the second-highest sales per capita in Iowa—$34,652—compared to the state average of $13,687. This is especially beneficial for retail, entertainment, and dining businesses.
CONSIDER YOUR BUDGET AND EXPENSES
Before committing to a commercial lease, you must carefully review your budget and financial capabilities. Evaluate the total cost of leasing, including the base rent, common area maintenance fees, utilities, insurance, and any additional expenses outlined in the lease agreement. Then, prepare a detailed budget that accounts for these costs to ensure the lease remains financially viable for your business.
This is an especially important step to take, considering how business real estate leases are often lengthier in comparison to their residential counterparts. To minimize risk, you may want to negotiate a shorter lease term with the option to renew. Although it could lead to higher monthly costs, avoiding long-term rent obligations can be advantageous.
ENGAGE LEGAL AND REAL ESTATE PROFESSIONALS
Navigating the complexities of commercial leasing can be challenging, especially if you’re not well-versed in real estate law and negotiations.
Consider engaging legal and real estate professionals who specialize in commercial leases. They can help you review lease agreements, negotiate favorable terms, and ensure that your rights and interests are protected throughout the process.
CONCLUSION
Signing a commercial lease is a significant decision that can have a lasting impact on your business. Remember to understand the different lease types, determine your space requirements, assess the location, evaluate your budget, and seek professional guidance. By following these essential steps, you can minimize risks and maximize the potential benefits of your commercial lease.
FIND COMMERCIAL REAL ESTATE PROPERTIES IN ALTOONA
Whether you’re searching for an “office for rent near me” or real estate space or retail space for lease in Iowa, the City of Altoona presents a plethora of opportunities to meet your needs. A leader in Iowa economic development, Altoona is a place where businesses and families can flourish, offering an exceptional quality of life, a robust economy, and a vibrant entertainment scene.
There are currently numerous commercial buildings available for rent and purchase in our business-friendly community, from small interior retail bays to massive industrial commerce centers. Plus, Altoona contains more than 1,600 acres of development-ready land, making it an ideal long-term location for companies looking to expand. What’s more, Altoona commercial real estate sales are often supported by exciting incentives, grants, and tax credits.
Explore Altoona land lease opportunities and tap into the growing Altoona commercial real estate market to find the ideal space for your business to thrive.
Search our commercial property database or request additional information to learn more.