The Best Way to Lease Commercial Real Estate in Atlanta

To find the right commercial lease for your business, you should understand the process. Know the types of leases, what to look for in properties, and how to negotiate terms. Follow our step-by-step guide to learn how to lease commercial real estate (CRE).

Step 1. Make Sure Leasing is Your Best Choice

Before you go too far in renting a commercial place, you should consider if it makes sense to buy it instead. Leasing is usually a short-term rental with no ownership. When the lease ends, you might have to leave or renew it.

Buying lets you build equity and keep the right to stay. Here are some pros and cons of leasing below

Step 2. Determine the Property Features You Require

After choosing leasing as the best option for your business, your next step is listing the features you need in a property. Consider your industry and customer type. Examples of features include location, size, and cost.

• Location

Location is crucial for your business. It affects talent and customer traffic. Being near businesses that complement yours can attract more customers. Check the area for potential employees and consider your customer base.

Zoning laws matter too, as they influence what business activities are allowed. Check with your local chamber of commerce for restrictions.

• Size

Your business operations decide the size and layout of the property you need. Consider the number of people onsite and parking spaces required for employees and customers.

Check local regulations for minimum requirements like parking spaces, handicap accessibility, restrooms, and maximum occupancy. Ensure compliance with safety and fire code requirements, including displaying evacuation routes and having fire extinguishers or first aid equipment.

• Cost

To get a good deal on your commercial lease, check the price per square foot and compare it to the local average. Negotiate based on your business performance and desired building characteristics.

Consider additional expenses like utilities, common area maintenance, build-outs, and potential rent increases if you plan to renew your lease.

Step 3. Find a CRE Lease Consultant

Commercial leases are usually managed by a listing agent or real estate leasing firms. Listing agents, chosen by the landlord, find suitable tenants, list properties, screen tenants, and present lease terms to the landlord.

Tenant representatives, working for you, represent your interests and ensure fair lease terms. They provide negotiation power and advantages like more real estate listings, accurate lease data, insights into financing options, and updated local market knowledge.

Step 4. Discover the Right Commercial Property

Finding the right property for your business can be a team effort with your

real estate consultant in Atlanta. Alternatively, they can handle all the searching for locations that fit your needs.

Review several properties before deciding to have more negotiating power and understand average lease prices and terms. Once you find a property, do multiple walkthroughs to ensure it meets your criteria. Check the landlord's history and how they've managed other properties.

Step 5. Pick a Lease Type That Fits You Best

Commercial leases have three types: full-service lease, net lease, and modified gross lease.

1. Full-service Lease: Common for offices, the landlord handles property maintenance, janitorial service, utilities, repairs, and ownership costs like taxes and insurance.

2. Net Lease: Tenants pay lower base rent but cover additional property costs like taxes, insurance, and maintenance. It can be a single, double, or triple net based on expenses covered.

3. Modified Gross Lease: Similar to net leases, tenants pay a fixed portion of taxes, insurance, or maintenance. The amounts are fixed, not variable, providing stability to tenants.

Step 6. Request, Negotiate, and Finalize the Lease Terms

Once you find a suitable property, the final steps for the lease involve submitting a request, negotiating, and completing paperwork. If you have a real estate consultant, they may use a standard form for negotiations. If not, create a letter of intent (LOI) detailing the terms you want and why you're a good tenant.

Include your business history, products, and services, reasons for being a good tenant, and how your company complements others in the area. Specify the commercial lease terms you're seeking, including pricing, type, and length.

In Conclusion

To lease commercial real estate in Atlanta, start by deciding if leasing is better than buying. Consider location, size, and costs. Get a real estate lease consultant like Terra Alma to help find the right property and type of lease.

Evaluate options, negotiate terms, and finalize agreements. The process involves thorough planning, understanding your needs, and careful negotiation.