Lease Commercial Property
Any business that plans to expand or open new locations needs to lease additional commercial real estate. This process involves selecting the right property, analyzing lease terms and knowing how to work with commercial realtors. The right choice of such an object can significantly affect the success of the company. For example, a conveniently located retail space can increase the flow of customers, and a quality office contributes to the productive work of employees.
There are different types of commercial real estate that can contribute to business development.
- Offices – for companies that need comfortable workspaces.
- Warehouses – for storage of goods or logistics.
- Commercial spaces – ideal for stores, restaurants, and salons.
In regions of Illinois like Chicago and its suburbs - Naperville, Buffalo Grove, Bloomington, Schaumburg - the commercial real estate choices are varied, and the market offers many options for leasing.
Types of Leases and Key Terms
When leasing commercial real estate, it is important to know what types of leases exist, understand the key terms, and what to look for when negotiating terms. This will help your business avoid unpleasant surprises in the future.
The main types of lease agreements
- Gross Lease: This type of lease provides for a fixed amount payment that already includes all operating expenses (utilities, cleaning, building maintenance). This type of lease can help you avoid unexpected expenses.
- Net Lease: In this type of lease, the tenant pays the base rent and a portion of the operating costs, such as property taxes, insurance, and maintenance.
- Triple Net Lease: this agreement is often used for leasing warehouses or retail premises. Assumes full coverage by the lessee of all operating costs (taxes, insurance, repairs).
- Percentage Lease: used mainly for retail properties. The tenant pays base rent plus a percentage of the revenue of their business. This type of lease is favorable for tenants with variable income.
Important nuances of negotiating the terms
- Duration of the contract: long-term lease is a favorable option for business and can ensure its stability. But, at the same time, you should take into account the possibility of withdrawal from the contract in case of change of circumstances.
- Rent increases: familiarize yourself with the terms of rent indexation. Many landlords provide for annual rent increases.
- Renewal options: make sure the lease has renewal clauses so that you can keep the business location after the initial term is over.
Understanding these important aspects will allow you to negotiate effectively with a commercial realtor and choose the best terms for your business.
Factors to Consider Before Leasing a Commercial Property
The success of a commercial real estate lease depends on the consideration of many factors and requires careful preparation.
The main factors are
- Zoning laws: before signing a contract, make sure that the property you choose complies with the zoning established by the local authorities. Note that offices, warehouses and retail spaces can be located in zones with various restrictions. Violation of zoning can result in fines or business closure.
- Property inspection: thoroughly inspect the property, this will help identify possible problems (worn out utilities, construction defects or need for repairs). If remodeling or installation of necessary equipment is necessary, make sure the property meets these requirements.
- The financial strength of the landlord: Ask for information about the landlord's credit history or financial condition. If he or she is having financial difficulties, this may affect the maintenance of the building or the terms of the lease.
- Licenses and permits: before leasing, make sure the facility meets all requirements, and you will have no difficulty in completing the necessary paperwork. This is especially important for restaurants, medical facilities and other specific businesses.
The lease agreement should include all the key aspects: redevelopment options, troubleshooting procedures, liability for utilities, and termination procedures. These important factors will provide a solid foundation for your business.
Popular Locations in Illinois for Business Property
Illinois is a place with many attractive locations for commercial real estate leasing, each with its own unique business advantages.
➔ Chicago is the state's largest business center and one of the leading economic capitals in the United States. The city attracts companies due to its developed infrastructure, access to major markets and high business activity. A variety of commercial real estate allows you to rent downtown offices, retail space and warehouses.
Advantages:
- excellent transport connections (air service, railways, highways);
- access to a large and solvent market;
- a variety of cultural and business opportunities.
➔ Naperville: Chicago suburb renowned for its high quality of life, modern business centers and steady increase in technology companies. It is attractive to businesses looking to combine business activity and employee comfort.
Advantages:
- prestigious office location;
- convenient access to Chicago via the transportation network;
- excellent infrastructure and a safe environment.
➔ Buffalo Grove: known for its business parks and office space, and favorable environment for small and medium-sized businesses. Ideal for companies that prefer a quiet and affordable location.
Advantages:
- an established network of business parks;
- family atmosphere attracting stable employees;
- proximity to major transportation hubs.
➔ Bloomington: excellent location for businesses in logistics, agriculture and insurance. Features low rental costs and a stable economy, making it attractive to a variety of businesses.
Advantages:
- affordable commercial real estate prices;
- convenient location for logistics infrastructure;
- stable, sustainable economic environment.
➔ Schaumburg: a major suburb of Chicago, is known for its Wood field Mall and developed business sector. It is an ideal location for retail and office space.
Advantages:
- active retail environment;
- modern office space;
- good transportation accessibility.
Regardless of preference, each of these locations are excellent opportunities for commercial real estate leasing.
Contact a Professional Commercial Realtor Today
Leasing commercial real estate requires careful analysis and market knowledge. It is almost impossible to avoid mistakes on your own, which can cost your business time and money.
The Barr Agency team offers a full range of services to make the leasing process as easy and profitable for you as possible. Our professional commercial realtors can help:
- find the perfect property to fit your goals;
- negotiate the terms of the lease on the best terms for you;
- ensure that all legal and technical requirements are met.
Whether you're looking for an office in downtown Chicago, a warehouse in Bloomington, or retail space in Naperville, we'll find the best option for you. Contact us today to get started on the path to your business success!
