With so many new commercial properties being built in Mississauga it is kind of hard for me to think of reasons why you shouldn't take your business to the next level and start leasing a property for your business. So rather than trying to convince potential leaser's in Mississauga and the GTA, I decided to create a post containing some really important tips for leasing a business property in Mississauga or the surrounding GTA.
1. Evaluate your business needs.
The first and most important tip I can give you is to be prepared and to evaluate your personal business needs. Take into consideration what your business is, how much foot traffic you expect and need to get to remain profitable. Understanding where you plan to get most of your traffic is very important. Is your business mostly web-based? Will you be selling products online? Will your space be mostly for storing merchandise? Or will it be a business that is more based on foot traffic like a salon or restaurant? This information will be key for you and your Real Estate agent. Knowing what your needs are before signing a lease can be the difference between having a very profitable business and barely staying afloat.
2. Always involve a lawyer.
There are few business situations in which I would suggest that someone signs a contract without having a lawyer look over the documents first. Leasing a commercial property in Mississauga or in the GTA is no exception. Just like having an experienced Real Estate agent is crucial in regards to finding the right space. It’s best to get a good commercial lawyer who understands leases. Some businesses use a general or family lawyer, and then end up signing a lease with unexpected costs. Leases are complex, and though it may be quicker, easier, or more affordable, a lot of mistakes can be made which can cost you thousands of dollars in the long run.
3. Understand your costs.
Aside from paying your monthly rent, there are a lot of costs that are associated with running a business or leasing a commercial property in Mississauga or the GTA area. Like stated in tip one you need to consider your monthly expenses in terms of how much you spend on merchandise or supplies, depending on what you are selling or how you make your profit. Business is all about turning a profit so understanding your costs and leveraging that against your estimated profits is the best way to set your self up for success in regards to leasing a property and being able to turn a good enough profit to keep your head above water. Always carefully review the incidentals you are being asked to pay to make sure the total cost fits your budget. Any future increases in base rent and incidentals should also be clearly stated. Don’t be shy about asking for changes.
4. Review termination conditions.
Make sure the circumstances under which either party may terminate the lease is clear to you. You need to have the answers to important questions. You need to know if you will be kicked out simply for missing a rent payment. You also need to be aware of what will happen if the building is sold. If your sales decline or you want to expand to a bigger space, how can you break the lease? Some leases require you to pay all or part of the remainder of the rent. Never be afraid to negotiate. Always keep in mind that you can always try to negotiate for better terms. Also, look at whether you can sublease the space. If sales decline, subleasing the whole space could allow you to move elsewhere without paying a hefty lease termination penalty. Alternatively, you could sublease or partner with someone sharing part of the space to help cover the rent.
5. Don’t be too quick to sign.
This ties back to tip number 2 always have a lawyer look over your lease agreement before signing. If you are looking to lease a property in Mississauga or the GTA and the landlord has an enticing reason for convincing you to sign documents sooner than later. Make sure you resist the urge to sign before having a lawyer or property professional look over the lease before you sign it. Landlords usually submit their own lease to prospective tenants. It’s vital to carefully review this document and the proposed responsibilities of the tenant and landlord. I’ve seen leases where the tenant didn’t do their homework and ended up being responsible for all sorts of unexpected costs or couldn’t break the lease without paying the remaining rent in full. The proposed lease usually isn’t fixed in stone you can always find some negotiating room.
I hope these 5 tips help you get started on your journey of leasing a commercial property in Mississauga or the GTA. If you have any questions or if you want to know more about leasing a property in Mississauga or the GTA area please feel free to call me, message me or DM me.