Experts in the field of commercial real estate rental and investment continue to report a decline in vacancies, a trend which investors hope will continue for at least several years. Investment in commercial properties rose over 7% in the past year, a hopeful sign for a market that is still recovering, albeit at a newly accelerated pace.
Commercial lease terms do vary, so prospective investors are advised to do extensive research before committing to the lease or purchase of a large retail space for rent. Even with smaller buildings, leases may indicate that the property manager is responsible for regular maintenance tasks or may specify that the tenant must provide same.
Often, a large retail space for rent may charge maintenance fees for areas that are shared with adjacent businesses. Parking spaces and easy access to the building is a legal requirement that aids disabled customers. Whether the business space for rent is up for long- or short-term rental, the provision of access to disabled individuals is a federal requirement and must be paid for by either the tenant or the property management team.
Customer and staff safety is also a common concern among investors and renters: security systems must be maintained to ensure repeat business from customers, and staff’s safety must also be monitored and guaranteed. Many investors and tenants choose a retail space to lease based upon the safety accorded to staff and customers, and many buy insurance to cover the cost of the inventory in the store in case of theft; policies may vary by state and location.
Other concerns to renters or investors in the process of finding a commercial property for rent or for sale may include the cost of upgrading existing computer or phone equipment and the cost of local taxes. For businesses assessing their chances of success in a particular location, an extended look at the big picture may be the deciding factor in what could be a lucrative, long-term investment.