Mistakes To Avoid When Leasing Commercial Real Estate In Philadelphia

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Leasing commercial property in Philadelphia can be daunting if you’re not familiar with the process. Each lease is a unique, so you must review the terms extensively. There is no “average” lease for commercial property in Philadelphia. Having a lawyer who is familiar with the leasing process can help you avoid any problems. Here are some common mistakes to avoid when leasing commercial real estate in Philadelphia:

Waiting Until the Last Minute

It’s best to start looking for commercial real estate in Philadelphia at least a year in advance. Don’t wait until the last minute! Starting early will give you an advantage when negotiating with landlords, and will allow you to get a feel for the market. You may find commercial real estate in Philadelphia that’s currently occupied, but will become available by the time you need it.

Selecting the Wrong Location

Find a location that will be easily visible to your clients, and easily accessible by your clients and employees. You don’t want to lease commercial real estate in Philadelphia ...
... only to find that trees block your sign, or new developments direct customers away from your store. Will the condition of the exterior scare off potential customers? Also keep in mind public transportation, demographics and zoning laws when looking for commercial property in Philadelphia.

Selecting the Wrong Building

When selecting commercial real estate in Philadelphia, the key points to look for are amenities and condition. Keep in mind that square feet are not created equal. A spacious property won’t be worth it in the long run if it’s laid out poorly. Make sure the amenities suit your business’ needs—check the status of the HVAC, and power, networking and Internet capabilities.

Not Considering Extra Costs

The cost of the base rent plus extras equals the “run rate.” Gross leases include all expenses, and triple net leases require the tenant to pay for expenses. Read the lease carefully to find out how much you’ll be paying for electricity, cleaning costs, insurance, common area maintenance, parking, taxes, water and garbage removal. Make sure these expenses are reasonable when leasing commercial property in Philadelphia.

Not Planning for the Future

When searching for commercial real estate in Philadelphia, make sure you consider the future of your business. If you suddenly downsize or expand, it helps to have a flexible lease. Shorter leases offer more flexibility, but they come with a price. It might be worth it in the long run! If you expect your business to grow, look for a lease that offers expansion rights. Find out if your landlord allows subleasing, or gives you the right to cancel or extend the lease.

Christen Ronchetti is a freelance writer for The Henderson Group, a company with over eighty-five years of experience leasing commercial property Philadelphia. For more info on leasing commercial real estate in Philadelphia, visit at Hendersongroupinc.com.