Execute a Commercial Property for Lease in Columbus, Ohio: Key Points
When executing commercial property for lease in Columbus, Ohio, landlords and business tenants have different perspectives and interests. Although no two leases are alike, typically, a core set of elements must be addressed. Before you lease commercial property, as a landlord, consider the following preparations and information that should be factored into any commercial space for lease. And if you’re looking for more information, our full guide on how to find and lease commercial space for rent is chock full of practical tips.
What Is a Commercial Lease Agreement?
A commercial lease is a legally binding agreement between a landlord (“lessor”) and a business tenant (“lessee”) for the rental of a commercial property. It is imperative that a commercial lease is executed when a business is about to rent commercial space to conduct business. A commercial lease defines the rights and responsibilities that each party has to the commercial property for rent. Commercial lease agreements also stipulate terms and conditions and are often negotiable.
One of the most common aspects of negotiating a commercial for lease is the length of the term. Due to the complexity and seriousness of commercial lease agreements, the landlord and business tenant should each have commercial real estate brokers negotiate the terms on their behalf. There are also many types of commercial leases as well as legal jargon. However, a commercial broker can help guide you through each step, from finding commercial space for lease or finding tenants to ensuring the commercial lease is executed in your best interest.
Prepare Your Commercial Property for Lease in Columbus, Ohio with 7 Basic Tasks
- Learn commercial leasing laws in Ohio. Read through Ohio Revised Code Chapter 1310 to get up to speed on commercial real estate for lease transactions. Creating a commercial lease that meets all of Ohio’s legal requirements will prevent a headache down the road.
- Learn commercial leasing laws in Columbus, Ohio. In addition to learning state leasing laws, it’s important that you educate yourself on laws specific to Columbus, Ohio. For example, Columbus requires that all rental payments are withheld and deposited in an escrow account with the municipal court in the event that a landlord fails to make necessary requested repairs.
- Understand the different types of commercial leases. Discover which option is best for you, such as gross rent lease, modified gross lease, or a triple net lease (NNN).
- Determine the length of your commercial lease. The standard term for commercial properties for lease is typically three to five years but some tenants need a longer lease term.
- Research comparable commercial properties for lease in Columbus, Ohio. Understanding the market rates can help you decide on an appropriate price for your commercial property for lease.
- Calculate all involved costs. Determine all financial aspects of your commercial space to lease. Aside from the commercial lease amount, also factor any taxes, fees, and maintenance costs.
- Ensure your commercial space to lease is ready for a new tenant. When turning over a commercial property from one tenant to another, it’s important that you make sure the commercial space for lease is presentable and up-to-date. Make pertinent updates to fixtures, lighting, appliances, etc. Give the space a deep cleaning. Make sure the space is secure; change the locks or deactivate the past tenant’s access entry cards. Check the curb appeal; walk around the exterior to make sure the grounds are presentable.
Include These Top 6 Elements in Your Commercial Property Lease
- Space: The commercial space to lease is commonly referred to as the “demised premises.” This is the street address, as well as the square footage of the available commercial space. This section of the commercial lease should also describe parking spaces, if applicable. The lease must clearly define these elements to protect both the landlord and tenants.
- Lease Inclusions: A commercial lease agreement should always state what is included in the rental fee that is owed to the landlord. Most commercial for lease are gross leases, meaning it’s all-inclusive because the tenant pays one sum, while the taxes, insurance, and maintenance are the landlord’s responsibility; however, some leases vary. Understanding the difference is important and it’s a good idea to outline these inclusions in the rental agreement within the lease. Some of these expenses are as follows:
- Property taxes
- Commercial property maintenance
- Utilities (electricity, water, gas)
- Rental Chart: While a commercial property lease will clearly state the rental amount, it should also specify how the rental rate is determined for the entire term of the lease. You can accomplish this with a rental chart, outlining the details of the commercial property for rent. If the rate of the commercial space for rent is expected to increase, the included chart will explain the amount and timeframe.
- Alterations During Tenancy: Commercial leases are often structured long-term, such as five, ten, or twenty years. As the tenant’s business grows, they may need to adapt their commercial rental space. Determine upfront which improvements or alterations they may be allowed to make with and without your approval. It’s also best to outline the process required to obtain such approval.
- Additional Provisions: A commercial property lease should be complete with nothing left for future negotiations. Be sure to include any additional provisions for the commercial space for rent, such as hours of operation, insurance requirements, and a sublet clause.
- End of Lease: Just as you laid out the types of updates the lessor may make to the commercial property for lease, it’s pertinent that you specify which alterations and improvements must be changed back before the contract ends for the commercial real estate for lease.
Provide Key Pieces of Supplemental Literature for the Commercial Real Estate for Lease
Aside from asking the right questions, keep important supplemental literature handy when negotiating a commercial real estate for lease with any prospective tenant. You have made an investment in your commercial property, and therefore, it’s critical that you protect yourself. The more information you can provide, the better off you will be in managing your commercial real estate for lease and making the most of your investment. Below are key points that should be thoroughly communicated in regard to a commercial real estate lease.
- Guidelines for the use of the commercial property for rent
- Insurance provisions
- Business plan provisions for any tenants
- Rental instructions for allowing others to use the property
Typical Disputes with Commercial Real Estate for Lease
A commercial real estate agreement can end up in a dispute. Below are the most typical reasons for commercial property lease disputes, on both sides. Focusing on these areas in your commercial property for lease agreement can help you prevent a future lawsuit.
- Breach of commercial lease
- Rent amount increases
- Overcharging rent
- Excessive late rent payment fees
- Missed rent payments or failure to pay rent
- Hidden fees
- Maintenance fee obligations
- Property alterations and improvement options
- Property damage
- Safety and structural integrity of the commercial building
- Safety concerns
- Security deposit
- Lease renewal or termination
Need Help with Your Commercial Property for Lease in Columbus, Ohio and Beyond?
If you try to lease your commercial property but find the task daunting, consider hiring an expert. With 85 years of experience, The Robert Weiler Company has assisted hundreds of landlords with their commercial properties for lease and commercial properties for rent. Our leasing agents utilize advanced tools and ask the right questions to ensure that expectations are met and exceeded. No matter what type of commercial real estate for lease you have to offer, we can help you find a tenant who will improve your property’s value. From office space for lease and retail space, to warehouse leases and industrial commercial leases, or any other commercial for lease, we work with clients in every market.
In addition to helping with commercial for lease, we can provide you with property management services if needed. It can be stressful for a property owner to manage leases, tenants moving in, rent collections and deposits, and in a worst-case scenario, an eviction. With a professional property management team on your side, you won’t have to worry about the day-to-day tasks.
At The Robert Weiler Company, our staff not only has vast experience and expertise in our fields; we also genuinely care about the community and success of local families and businesses. Call us at 614-221-4286 to find out how we can assist with your commercial property for lease in Columbus, Ohio, or throughout Central Ohio.