Leasing Retail Space
As a tenant when you lease retail space in Austin, you are typically responsible for all maintenance that is provided to your retail space.
Sometimes this part of the lease can be the most confusing for tenants. Do you have a good market knowledge of what to ask for when it comes to maintenance? A broker will and will be able to ask the right questions to apply the best leverage possible for retail leasing.
Who is responsible for Maintenance and Signage?
Can the landlord provide an estimate of monthly maintenance costs for the retail space? What about signage? Let’s not forget about signage it is most likely outside of other marketing efforts one of the most important marketing items you have to consider regarding visibility and design.
Who is responsible for what, what is covered by the landlord and what has to be paid for by you as the tenant. Retail leasing can be the most complicated commercial real estate transaction there is versus office and warehouse properties.Depending on the retail space you lease, some utilities may be part of your lease rate and some may not be. You may be responsible for utilities based on a percentage or based on the square footage your occupy within the retail center.
Are Water and sewer are typically included in your lease rate? What about gas if applicable, trash removal and janitorial costs?
Does the current landlord have a good reputation?
When there is an uncertain market a tenant – broker should ensure that you aren’t signing a lease in a property that is under any kind of financial hardship. Surely as a tenant you would not want to be in a situation where a property was to be foreclosed on, this is not typical for Austin however in 2016.
Asking the right questions are easy when a professional broker is asked to help a tenant acquire a retail space, it takes the guessing game out of the equation.
Quick leasing Do’s or Dont’s
- Who pays for what repairs?
- Additional fees?
- Utilities , what is covered?
- How are utilities metered?
- Landlord history?