There are several benefits of mall space for rent, which are listed below:
- Working prerequisites: If the business’ working necessities are required to change fundamentally over the next few years, renting would presumably be the best option, since it permits organizations to move more effectively.
- Capital supply and capital needs: Renting arranges for a more noteworthy rate of a little business’ capital for other working needs such as, promoting, creation, gear, finance, and so forth. In the event that the business does not have a great deal of additional money, then renting may be a more sensible decision. This is likely the main motivation why people prefer to have mall space for rent.
- Financing and instalment adaptability: It is one of the easiest ways to secure financing by renting instead of buying a property. Also, rents can be spread out over more years than credits and can be organized to make up for income varieties.
- Resale worth: Is the estimation of the property liable to increase? Provided that this is true, by what amount? Therefore, numerous little entrepreneurs decide to buy as opposed to renting, regardless of the possibility that they need to collect critical obligation, if they choose that the asset is quite beneficial for long term speculations.
- Machines or equipments: Many lease contracts incorporate stipulations that furnish residents with expanded adaptability as far as updating or maintaining the equipments.
- Taxes: Property proprietors appreciate tax reductions, for example, devaluation and speculation expense attributes that are not open to occupants.
If you see from a Landlord Perspective, you will find the listed advantages while renting a space for mall:
- A ground lease maintains a strategic distance from the acknowledgement of the gain, which the proprietor would somehow remain away from in case of selling the land. There are no income tax consequences related to the ground lease.
- The proprietor holds charge possession of the property. This is an imperative thought to numerous family trusts and institutional proprietors who crave to keep up long haul possession with a specific end goal to put the property to financially profitable utilization.
- Through different procurements in the ground lease records, a proprietor may hold some component of control over the advancement and allowed employments in the area that rents under the ground lease. Numerous ground leases oblige an inhabitant to create, build and work a particular kind of business undertaking and not change the way of the venture without the landowner’s.
Nowadays, most of the companies prefer office space for lease instead of having their own properties. This is because it helps them in reducing a lot of their real estate cost. Here are 10 quick tips about office space leasing, which you need to consider before taking any lease:
- Start looking for Office Space Lease as early as possible. In case you require a small place then you should start searching for the place 12-18 months prior to your lease expiration, similarly if you need larger space, you should start your evaluation 2-3 years prior to the lease expiration.
- It’s important to evaluate the building before relocation, consult with an architect or planner to know the optimal space size because you might grow with time and need a larger space for your organization. So before leasing a space keep in mind the growth objective of your organization.
- In case you are renewing your old lease, try to consult with other agents to bring in some competition, which will help you in price negotiations and will know the latest trends of the market.
- Apart from the rental rate, ask for other concessions which you will get in the long run.
- While selecting the space, you should pay attention towards the build out costs; otherwise you might have to pay a lot more than you what you agreed to.
- You should be careful while deciding the operating expenses.
- In case of a renewal you must pay attention to the lease agreement, to know what are the changes, what more you will be getting more this, and for how long your lease is being renewed for.
- Always compare the economic packages offered by the builders, evaluate all the cost factors and then only decide which one is the best for your organization.
- Sublease provision is also an important part of your lease agreement, because in case of its poor negotiation you can hamper the marketability of your space.
- Look for those places which provide some flexibility, so that you can make some changes in the space as per your requirement and need.
Apart from all these points, it’s also important to look for the location in which you are looking for the space for your office. As the cost may vary from place to place and the features may also differ.
If you are looking for business space for lease, in that case you need to know that there are many different aspects which you need to be aware of so as to protect your rights as well as get the best rate. As such let us check at some of the essential points which will help you in finding the right retail property.
Finding the Right Property on Lease
1. Settle The Terms: If you have found the right property then the next step will consist of discussing various terms.At the time of taking any business space for lease you will also have to figure it out whether there would be any increment in lease amount during the tenure so as to avoid unexpected surprises later on.
2. Know The Expenditures: Right at the onset you should have clear information about expenditures which you will have to bear.
Like for instance, there could be maintenance cost you will have to pay for different shared facilities and you should know about them at the beginning itself. The lease agreement should clearly mention who will be responsible for such type of expenditures.
3. Property Maintenance: There are different maintenance expenditures and it should be clear who will be making those expenditures.
Normally, you will be required to maintain the air conditioning as well as plumbing system while property owner will have to look after general maintenance and repairs. You need to check the agreement papers to make sure the same is mentioned in it or not.
4. Lease Agreement: Another important thing for you will be to thoroughly go through the lease agreement and also have your lawyer as well as leasing agent check it. There could be caveats in it which will create issues later on.
In addition to it, consult your lawyer about including add-ons in the agreement which help in protecting your business rights. As for example, exclusivity clause can be added in the lease. The usefulness of this clause is that it prevents the owner from giving any office space within the premise to any of your competitors.
In case you are planning to take shopping mall leasing and eager to know what aspects to take into consideration then you are at the right place. In the following sections we will try to explain various things which will help you in finding the place to take on lease and avoid future problems.
Factors Affecting Selection of Location
One of the steps you need to take is to request a pro forma copy for the lease and go through it thoroughly to check for any caveats it may have. Some of the other aspects you should keep note of include:
- Make sure the mall space for lease is in a safe location where customers will not have inhibition in going to.
- Secondly mall leasing will become easier if you choose a location which you consider as your target market. For this you will have to figure out where most of your customers are.
- Another thing which may seem to be counter intuitive at first is to rent a space where your competitors are also located.
The reason for doing so that you will have the assurance that people interested in your product will be close to your location. This is particularly beneficial for any new business with not so good customer base.
- When talking about shopping mall for lease, you should try to find a location where other complementary or compatible businesses are also located.
As for example, coffee shops close to a restaurant, which ensures customers can have dinner as well as go for a coffee if they like.
- You also need to make sure the mall is not in any remote location where it would be difficult for people to reach. The place should be easily reachable by using means of public transport.
Factors Affecting Monthly Rents
Let us now check some of the main factors which will have a role to play in how much you will have to pay as your monthly rent for the mall space.
- If it is in prime location then rent will be high.
- In case your store is next to a big brands store like support Nike then expect higher rent.
- For longer term the rate will go down and vice versa.
Retail outlets are a lot more than just sales centers. These serve as an identity of the brand or product that is sold in the outlet. This implies that everything to do with the retail outlet should be in sync with the ideology and image of the brand. Retail outlets may be placed in malls, shopping markets, shopping centers and multi-use properties, but the purpose of the property is what should be the deciding factor for the final location of the business. There are a number of factors that affect the choice of retail space for lease. One of the most important factors is the kind of target audience that the business works for. As an example, If the target audience is college going youngsters, the outlet is best placed near a college, cinema hall, in a mall etc. If the target audience is from the home maker segment, the areas of work change to markets, shopping centers etc. This shows that the kind of people that are expected to visit the store help in deciding the location of business, implying that the business should be taken to the clients instead of it being the other way round.
Another important criterion in the choice of leasing a retail outlet is to check the size and condition of the outlet. If the outlet is not in a very good condition and requires a lot of work, it may mean a lot of losses for the business owners, however, if the location is a viable one and there is still some amount of work to be done, the risk is worth taking. The viewership that the retail space for lease gets is also an influencing factor in choosing the place; this is because the business prospect of a more exposed outlet is higher than one that is set in the interiors of a building, out of obvious public view. Finally the accessibility of the retail space should be easy, because if a competitor is in better reach of a client, the client is more likely to go to the competitor, causing the others to lose business. With the right kind of choice in property, the future of the business also proves to be bright.
An office space is the most important aspect of a business. When the office space is right, half the battle to achieving a successful business is won. When one is out to seek an ideal commercial property for lease it is important that they consider these 7 factors or tips, before choosing the space.
- The location of the commercial property is extremely important, it must be ensured that the office is centrally located or at least in the close vicinity of important offices and outlets. This ensures that the business is in the heat of action and not in some discreet corner of the city, out of the reach of people who need to notice it.
- The size of the property for lease must be checked with precision. An office too big or too small may work as a hindrance in the process of running the business smoothly. A perfectly sized office proves to be a good investment for those who put their money in the property.
- It is important that the amenities and facilities in the commercial property for lease are fit for housing an office. Having to spend time and money on building basic amenities may prove to be harmful for the business because the ideal workplace is one that may be instantly put to use.
- Having an office property in the heart of a commercial hub is always a smart way to hire property. When you are at the center of the game, you are able to play better and keep an even better watch on how your competitors are playing.
- Keeping within budget is something that proves to be tricky for a lot of people. It is necessary that a strict budget guideline is set when one embarks on the process of searching for the property.
- The commercial property chosen for lease must also be an easy access one. Something that is closer to railway stations or highways would be a more viable option than one that is located in a closed area.
- An office that is overlooking the road or a public space is the most viable one, owing to the easy identification that it enjoys.
When leasing a property for commercial purposes, the best things one can do is get in touch with an expert and safely choose from a host of options.
The purchase of property in a growing country such as India is always profitable and a lucrative investment option. People who know the property market would say that now is the time when money may be put in the market so that exquisite returns are received in the future. However, those who embark on making the investment often fall into a dilemma of whether they must invest in residential property or retail property. The choices have their own advantages and disadvantages, but it is necessary to understand one property option in detail to understand how it benefits the investors in general. Considering retail property for lease, there are a lot of factors that work in the favour of the investors and help them make money by simply investing in a property that is already meant for making money!
One of the biggest factor in the success of a retail property investment is that the chances of landing the property in a good location are very high, the reason for this is that retail properties are built in viable locations, these locations are supposed to be such that help drive businesses. Having a retail property also opens up business avenues for the owners, which means that if the investors decide to start a business at a later stage, they already have a place to carry it out from. Finding trustworthy tenants becomes an easy task when it comes to a retail property, because one would hardly invest in property rentals for a retail property if they were into something out of the line. From the financial perspective investing in a retail property on lease is much more affordable as compared to any other kind of a property, making it possible for more people to be able to put their money into the type of property.
In India, buying a property is a very big investment, owing to the sky high property rates, which is one of the reasons why it becomes essential to make a thorough research about the property type as well as the actual property before taking the final plunge.