When you own a business, your profit margin is extremely important. And every dollar you put into expenses, no matter how necessary, is one less dollar in profit. Therefore, you want to get the most out of the money you invest in your business expenses. And you certainly do not want to overpay for rent.
But when you go searching for a property to lease, how do know what constitutes a reasonable rental rate? Well, first you need to determine if the asking price meets the standard of fair market value. To do this you need to know how much the landlord is charging per square foot of space. You then research the properties in the immediate vicinity and find out what the going rate per square foot is for those properties.
But the price per square foot is not the only consideration. You should also compare the condition of the properties you are researching. For example, a property that is newer or in better condition will likely have a higher fair market value.
There are other factors that can affect a property’s fair market value, including special zoning, insurance and property taxes. The cost of these items could be passed from the landlord on to you and increase your rental price.
Before you sign a lease agreement for a commercial property, you want to be sure you are getting what you need for the best possible price. Doing this requires paying close attention to all of the details regarding both the property and its lease. Misunderstandings about the terms of your agreement could lead to a dispute with your landlord if problems arise.
And unfortunately, sometimes landlord-tenant disputes escalate to the point where legal action must be taken to find a resolution. If you are in a dispute with your landlord, you may want to have a Florida commercial real estate attorney take a look at your lease. The attorney can help you understand your rights and responsibilities as a tenant, and if your rights are being violated, then the attorney may be able to work on your behalf to reach an acceptable outcome.