Leasing a commercial property can feel very similar to renting a house. However, when it comes to commercial property, there is definitely a lot more standardisation and regulations, compared to the housing rental market.
Leasing commercial property, especially in a tough market such as Melbourne, can be a great option if you don’t currently have the equity to purchase. The first step of this process though is finding the right property for you. In order to decide on your dream commercial property, you need to identify the perfect location, budget for your lease, infrastructure needs, and more. Once you have made all the necessary decisions, you are on your way to finding your dream commercial property.
If you are struggling to determine what really matters, or just want to learn more about what to consider, here are the factors you need to consider before leasing a commercial property in Melbourne:
Rental Cost and Tenure
One of the most crucial factors when leasing is the rental cost. When searching for a commercial property, inform yourself about the current market rates, so you have an idea of the rental amounts before you begin searching. Rent is one of the costs that you will need to pay consistently, even when your business could be struggling, so always be sure to stay within your budget. If you aren’t finding it easy to agree on a rental amount, you might want to get help from an expert. Alongside this you will also need to agree on the tenure of the lease – remember, a short-term lease with a renewal option is always safer.
Location
There are few key things to pay attention to when choosing the right location to lease a commercial property.
Always consider the following questions: Will your business be able to grow in this location? Is the area zoned for commercial purposes? If you answer yes – then you are ready to move forward with the location.
You should also explore the neighbourhood, local markets, transportation options, restaurants, and customer behaviours in the area, to ensure you can successfully run your business in that location.
Size
The cost of a property will naturally increase with the size. You will need to analyse how much space you need to run your business, so you don’t end up with a space that’s too large, or too small.
Be sure to examine every single aspect of the property, and make sure to visit the property in person, and not make your decision based on the online viewing.
Type of Commercial Lease
You can lease a commercial property in two different ways – gross commercial lease and net commercial lease. With a gross commercial lease, the owner of the property pays for the operational expenses associated with the property.
While a net commercial lease will require you to pay for the operating costs of leasing the property. These expenses often include insurance, taxes, and maintenance costs. It is important that each of these coats are mentioned clearly and explicitly in your contract before your lease is finalised.
Leasing a commercial property in Melbourne isn’t as easy as it may seem. Even a minor mistake can cause massive financial loss. This is why it’s always important to have a professional on your side to help when looking to lease a commercial property. Axis Property specialise in the leasing of commercial property throughout Melbourne. Their only aim is client satisfaction, and they will always go the extra mile in order to help you achieve your property goals.
If you are looking to buy, sell, or lease a commercial property in Melbourne – get in touch with Axis, and they will help you with property management, negotiations and offer genuine customer service.