Tips for Tenants

Joel-Hutak-MidCounties-Industrial-Notes

Tips for Tenants

Common Leasing Tips

  • MOST IMPORTANT: Use a local Market Expert to be educated and update on the Market. This way YOU will know when “The Deal” presents itself and you don’t have to hope the Agent’s opinion has your best interests in mind. Trust Us, your relative, who has a real estate license is not going to save you money BUT they will cost you Time!
  • Negotiate a favorable market rate, free rent, Tenant-Improvements; Security Deposit reductions over time etc.
  • Limited Pass-Thru exposure by negotiating a Cap on CAM’s or NNN’s. If you don’t know what those are, call us!
  • Increase Warranty Periods; HVAC, Mechanical Features, Roof.

Advantages of Leasing a Building

  • Flexibility if you are a new company or you are rapidly growing.
  • Don’t have to come up with the down payment.
  • Don’t need 3 years of financials to qualify for a loan.
  • Lease payment is a tax deduction.
  • Lower maintenance cost; in some instances, not all!

Disadvantages of Leasing a Building

  • Rate Increases.
  • Lease renewal ends – change of business location.
  • No long term equity.
  • Less Control over the property.

Common Tenant Mistakes

  • Not leaving enough time to prepare for the move.
  • “I’m stuck in a lease for another X # of years and can’t move”; WRONG!
  • “I’m out of space I Have to move ASAP!” How about leasing another building nearby for a short term to satisfy a shorter term vendor requirement?
Download our in depth PRE-RELOCATION CHECKLIST!
SAVE TIME. SAVE MONEY. REDUCE RISK:
Call or email Joel or Phil

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