Tips for renting commercial real estate

by correspondent
Published: Updated: 180 views

Many people are hit with the entrepreneurial bug and start their own business. Here are some tips for leasing an office premises. This is not for retail business:

  1. Take atleast a 5 year lease. If you are not sure of your businesses sucess start from somewhere modest but once it is successful choose a place where you have a long term committment.
  2. When someone says a lease price per sft – it should be on carpet area basis not plinth area or super built up area. The latter two include common areas and area under walls etc. This is the norm
  3. If you are taking a residential premises then dont pay the same price as a commercial area even if they are right next to each other. This is for two reasons, firstly residential premises have walls that waste a lot of space and increase net cost per sft. Secondly, commercial premises have already invested in some infrastructure that make it easy for you – transformer for building, industrial electrical meters. heavy duty electrical cables. All these save both time and money which you will not find in a residential premises.
  4. Stay away from expensive places. Ask yourself this question – which area will turn out into a good area for offices in the next 3-4 years and is cheap now? That is where you need to have your office.

More later. Let me know your comments…

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