Commercial Real Estate Details

Commercial Real Estate Details

Commercial Real Estate Details

Commercial real estate is defined as property that is income-producing such as office buildings, gasoline stations, restaurants, shopping centers, hotels and motels, parking lots and stores. It can also be residential development land. When leasing, there are several factors to consider when understanding, negotiating and administering a lease.

Leasing commercial real estate is a progression of combining your ideas for the space, your budget, and meeting the needs of everyone involved. Many problems and surprises can occur in the course of a lease, but you do not have to be caught off guard if you become aware of the potential dilemmas. If you understand and approach each step with a clear mind of what you want accomplished, you will be on your way to leasing the real estate that is right for you. Here are a few of the basic aspects to consider when purchasing.

Size and Surveying the Market

The first step towards acquiring the right commercial real estate is determining the dimensions of the space that will best fit your enterprise. The size is important because if it is either too large or too small, your entire endeavor will suffer. You dont want to invest in property that you will not use; dont let people talk you into unnecessary real estate.

It is also important to shop around essentially and discover the different opportunities available. A few items to consider when researching is location, amenities and services, and the history of the current landlord, as well as how these will affect your enterprise in the long run.

Understand the Contract

Many real estate lease problems arise because of a poorly constructed lease contract. A lease is intended to set out the agreements of a relationship between a landlord and a tenant. If you are not aware of all the issues in the beginning when you sign the contract, whether you are the landlord or the tenant, difficulties can find you down the road.

A lease should be drafted in compliance and compromise between both the landlord and the tenant so that each party receives what he or she wants to a reasonable extent. Problems can arise for example, when a tenant simply signs a Standard Form Lease - which is essentially a landlords wish list and the tenant is left high and dry in certain circumstances. On the other hand, if a tenant makes modifications to the form that a landlord does not fully understand, the landlord can also be found in an unpleasant situation.


When negotiating your lease, it is helpful to have a project team. The project team is made up of all the important people that should be present when discussing the lease: the landlord, the tenant and the real estate agent. Depending on the complexity of the lease, other participants might be needed but the overall concern is to keep open the lines of communication. It is easy for a single person to become overwhelmed by the process of developing a commercial real estate lease , so the more participants available the more the work can be spread out.

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