Forums: Discussions for entrepreneurs and small business.

Hi, my question is regarding the rental/lease of some commercial space. I intend on opening a Graphic Design Studio / Sign Shop. I need about 1700sqft for all the equipment (CNC machine, Wide format Digital printer, 16ft x 4ft work bench, office space). I am currently in Southern California. I have inquired about pricing (from existing tenants) and they say that, in the area I`m looking, its about $0.75 - $1.00 per sq ft. Not bad I say. But what I`d like to know and be prepared for is this: How does it work? Is is as simple as renting an apartment? Or more complicated? Can I lease as an individual or do I have to have my company as the entity that is on the lease?

I am hesitant to just call a leasing agent as I don`t want to sound naive and embarrass myself nor do I want an over zealous agent or broker calling me every day until I`m absolutely prepared to make this move.

Any insight would be greatly appreciated...

Thanks,

Omar

No need to be shy.  The lease will be complicated.  You may need an attorney to review it.  You do need an agent.  I can recommend the one that we used:

Matthew Brainard or Monique P. Lacey
Bailes & Associates, Inc.
11601 Wilshire Boulevard
Suite 1900
Los Angeles, CA 90025
(310) 445-4300

They were very good.  Please let them know that I recommended them.

-------------------------

Norton R. Townsley
Patent Attorney/Professional Engineer
The above message is provided for general information purposes only and is not to be construed as legal advice.

Ive leased several commercial buildings (spaces) over the years, and never used an agent.  Read the lease yourself (most are written in plain english nowadays) and then if you do not understand anything dont be afraid to ask.

 

Key things to look for:

How long is your rate locked in for?

Will your rate automatically go up if/when you renew?

Are there any insurance requirements?

Who is repsonsible for maintenance and repairs?

What happens if you default on the lease?

 

 

Now... if it reads like a stereo manual written in some foreign obtuse language, get some professional help.

The best and only thing you should be doing here is to speak with an attorney. Although it sounds radical, DONT LISTEN TO ANYONE BUT AN ATTORNEY.  Leases are very complicated and different from each other. Some lanlords are nice and understanding, some just want to get paid, like in the George Througood song, burbon, scotch and beer.

One last thing, unless your business is already big and established you will have to give a personal guarantee. But talk to an attorney.

If you need recommendation on one, mine in Florida is very good and affordable. Let me know and I will be glad to recommed him to you. But in any case, talk to one.

Good luck!!!

-------------------------

jump! jump! jump!...didn`t it feel good!!!

The cost per sq foot can be tricky.  Some folks like to quote the base rent as the cost per sq foot.  I would make a point of asking specifically, what is my monthly, quarterly, and annual costs going to be of the lease.  The common area maintenance charges and pro-rated taxes are some times built into the base rent and other times itemized out.  

Some background:

http://www.ezinearticles.com/?Commercial-Leases---Do-You-Kno w-The-Basic-Structures?&id=179363

Might be able to find this at the local library

http://www.amazon.com/gp/product/0764553704/104-1787862-4559 136?v=glance&n=283155

Omar-

When I checked into renting commercial space in Vegas, it is $2-$2.35/sqr. foot, so the price you were quoted seems extremely good.  I was told I would need $15,000 upfront for the space (sec. deposit, and a few months rent).  This did not include common area maintenance and does not include electric, phone, or build-out other than a bathroom.  You have to do your own buildout (customizing of the interior) unless you want to pay the landlord extra to do it.  Hope this gives you some ideas of questions to ask.

Jillybeans

Thanks for you advice folks.
I guess I associate shy with unprofessional and i surely dont wish to be taken advantage of.
I guess I will never now until I ask.... So I`m asking.