3 things to watch out for when signing a Brisbane commercial property lease
With more and more options available when leasing Brisbane commercial property it can be difficult to decide which is best for your business. With new options such as co-working now shaking up the Brisbane commercial property market, how do you know what is the right lease agreement for you? Many businesses, particularly startups, are attracted to co-working spaces for the flexible leasing terms. However, open plan shared office space isn’t right for everyone. A traditional lease and private tenancy can be a better option for more established small to medium businesses, and for those who have outgrown co-working spaces. If this sounds like you, we’ve put together a list of three key things lessees should look out for when analysing a Brisbane commercial property lease agreement.
Tip 1: Seek legal advice
Before signing a lease make sure you retain a legal professional who is experienced in reviewing Brisbane commercial property leases. Discuss things like your financial obligations under the lease, and what you will need to do and any applicable penalties if you wish to break the lease early. It’s extremely important that you are fully aware of your obligations under the lease agreement so if you have any questions, make sure you ask them before signing.
Tip 2: Factor in insurance
All responsible lessors of Brisbane commercial property will request lessees have insurance. This is a no brainer, but some lessees don’t realise this is a definite must. Ensure that you factor in insurance costs when mapping out your business plan to avoid killing your budget when you’re trying to negotiate a lease.
Tip 3: Ensure you understand your obligations when it comes to maintenance and repairs
Read the lease agreement carefully and understand what you as the lessee will be required to repair and/or maintain at your expense. When reviewing a Brisbane commercial property lease it’s important to check how Outgoings will be treated. Are these included in the rent (often called a Gross rent) or will you be billed by the lessor/managing agent separately for Outgoings (often called a Net rent plus Outgoings)? Also, be mindful of GST and how it will be applied to rent and/or Outgoings. If you’re unsure of any of the above, ask your legal advisor. It is important that you verify this detail before signing a lease and make sure the details are clearly stated in your lease.
So there you have it. Some tips to help you navigate your next Brisbane commercial property lease agreement. If you’re currently in the market for a commercial tenancy Blocksidge Real Estate can offer both traditional commercial property lease options and/or co-working leases via Block Work. Call us today for help on 07 3233 3966.