Do you want to be a part of Putnam's economic growth?
Commercial property investors play an instrumental role in the community for both small business owners and consumers.
This mission starts with a solid understanding of your community's needs. Which businesses or services does your community need? What types of market trends do you notice?
It takes more than buying an investment property. You need a property in the perfect location designed for an in-demand business. You also need long-term commercial tenants; high turnover can signal a downturn in financial health, making it difficult to sell the property.
Commercial lease agreements play a key role in attracting and retaining the right commercial tenants for years to come.
So what do you need to know? We've got the 411. Learn more about property leasing terms.
Develop a Pricing Strategy
Whether you're drawing up a retail lease agreement or an office space leasing arrangement, you must nail down the right price. The monthly lease rate must align with the market rate for the commercial area. This price is included in the marketing campaign and the lease contract itself.
If there are rent increases, these facts must be included in the lease, and the new monthly lease rate must be stipulated in a new contract.
Work With a Professional On Commercial Lease Agreements
Don't put anything in ink before talking to a licensed real estate lawyer. All lease agreements should be drawn up and reviewed by an attorney before signing. You can also work with a property management company with a legal team.
One of the smartest moves you can make is to hire a commercial property management company. They handle every aspect of lease management, including document creation. A property manager will also notify tenants well in advance about lease renewals and will conduct a proper commercial lease negotiation if necessary.
Compliance Terms in a Commercial Lease
Developing a professional lease is an important part of the compliance process. Every business must follow strict rules for local and national compliance, including accommodations as described by the Americans With Disabilities Act. This would include ramps, wheelchair-friendly entrances, and seating accommodations.
Commercial tenants must also adhere to strict health and safety codes. This may include employee safety training, food preparation measures, and the installation of industry-standard commercial appliances. Small businesses are routinely inspected and graded for safety and sanitation.
OSHA standards should also be included in the lease agreement. For example, the lease should stipulate that exits must remain clear of debris. This also applies to electrical equipment.
The lease must remind tenants about equal opportunity employer and fair hiring policies. Businesses may be fined or sued by employment law firms if they're found in violation of these stipulations.
Restart Your Lease Management Strategy
Every Putnam property investor needs a sound management strategy for commercial lease agreements. Review the tips above and talk to a property manager about your goals for commercial real estate.
PMI Putnam is committed to providing the highest quality property management services to the community. We're part of the nation's largest property management franchise. Our leadership team has vast industry experience in real estate, tax accounting, and customer service.
Schedule an appointment to discuss your goals for the Putnam community.
