How to Uncover Hidden Opportunities With Commercial Lease Analysis

How to Uncover Hidden Opportunities With Commercial Lease Analysis

Over 2,378 businesses operate in Lynnwood, Washington, with the majority of which are small, local businesses. One major necessity of having a small business in a small town is having a brick-and-mortar property.

Whether you are looking for a commercial space to rent or to buy, getting a commercial lease analysis can benefit your business.

Find out how this practice can help your company below.

What is a Commercial Lease Analysis?

A lease contains a lot of information about a commercial property, including the terms and conditions between a landlord and a tenant. It may also show potential buyers the value of your property based on the lease agreements already in place. Either way, assessing the lease or multiple leases will clarify the legal terms and present the overall value of the lease to the tenant or buyer.

Who Can Use a Lease Analysis?

Anyone who owns a commercial property, currently leases or plans to lease in a commercial building, or anticipates buying commercial real estate may use a lease analysis.

A third party, like a property management company, provides the analysis to display the potential cash flow of a property based on lease agreements and the parties involved.

The Benefits of Assessing Commercial Leases

Real estate leases are legal documents but they are also expectation setters. Both the landlord, buyer, and tenant can benefit from having their lease analyzed. These benefits include:

  • Understand Laws and Regulations
  • Agree to Financial Terms
  • Determine if Needs are Met
  • Compare Properties
  • Map Cashflow and Expenses
  • Help with Tenant Management

By having everything in writing, all parties are able to clearly see what is expected of them.

What's Included in a Lease Analysis?

With over $2.7 million made in Lynnwood's retail industry, it is important to know how your business will be a part of the local economy. However, you can only benefit from a lease if it includes the appropriate clauses and information. These items will help landlords and investors understand how they will make money and how tenants will pay rent and abide by rules to avoid eviction.

The following should be included in the commercial real estate lease, which will be assessed by the property management service.

  • Financial Terms 

Financial terms include monthly rent, deposit amounts and terms, and a schedule of payments. You should also determine if there will be any late fees or penalties.

  • Property Use

How will the property be used for commercial purposes? Decide if there are any restrictions on the type of business or alterations to the property.

  • Maintenance and Insurance Responsibilities

Include who is responsible for the general maintenance of the property. This includes appliances, lights, and HVAC systems as well as outdoor spaces. Also, make sure that the tenant has rental insurance and what is covered under their plan.

  • Termination Conditions

Make a clause that allows tenants to leave the lease early. This should include penalties and notice requirements

Get a Professional Lease Analysis 

Commercial lease analysis can be complex and changeable according to the property and the people involved. Keeping your lease current helps you avoid liability, find the best tenants and properties, and make the most of your ROI.

Ensure you get the most out of your lease by using PMI Brewder Realty. Get started by contacting us to speak with a leasing expert.