While looking to buy or lease your next commercial space there are certain things that can’t be overlooked. In order to ensure your move is a success, a quality Due Diligence process is extremely important to ensure you are fully aware of what you are taking on. By doing your homework up front and understanding your prospective spaces you will positively impact your bottom line and overall move experience. Since we do this on a daily basis, here is our “four essentials to due diligence” checklist.
Ask for help:
Unless you are a large corporation fortunate enough to boast an internal real estate department or were in commercial reality in a past life there will always be things you won’t be well-versed in. You don’t know what you don’t know – not asking the correct questions can lead you down a dark and scary path. Without attorneys, brokers, local market experts, architects and engineers you are at a disadvantage from the start. Usually, a tenant-only advisor is the center point of your team as they solely work with you and it is common for them to either boast in house or have connections to the other team members necessary to build a successful lineup.
Learn the Market:
Prior to looking at specific leases is best practice to fully understand the areas you are looking at to ensure they should even be a possibility. You want to understand your current company culture to make sure there is a fit while also being focused on everything from government financial incentives to neighborhood affordability overall.
Have a vision with the space:
When looking at a specific space there are a few things that often go overlooked. At this specific time, the size may be able to accommodate you and your team, but what happens as you scale? Think long term, you want a space you can afford while also giving you the opportunity to expand. Beyond vision, there are technical things that must be addressed; Wiring, HVAC, Columns, and other elements that will limit what you can do to customize the space for your unique culture and business needs.
Lease Due Diligence
Fully examine the lease you are about to sign. There is verbiage that may be misleading which is why it is extremely important to have seasoned commercial advisors on your team to guide through this process. Read all accompanying literature that may not be part of your lease but that will still affect your tenancy ie. building rules and regulations, building insurance, maintenance history, and historical operating costs. All of these things will shed light on expenses that could come in the near future.
Coughlin is committed to our Tenants. We hoped you gained a bit of insight into how important Due Diligence is throughout the commercial selection and moving process. As always, if there are ever any questions, comments or concerns regarding your next lease please do not hesitate to contact us as it would be our pleasure to be your tenant-only advisor.