Idaho is one of the best places to start or to expand your business. No wonder since, for a long time, it’s considered one of the most entrepreneurial places in the states. Centralized western location, ease of access to major cities, and incentive programs are making it ideal. Because of that, everything from simple home-based startups to the expansion of large corporations is taking place here. This, as a result, brings competitiveness on the commercial estate market. Depending on the season, finding a rental can be hard. However, if you take enough time to plan, you will be ready to successfully lease a business space in Idaho.
Things to consider when you want to lease a business space in Idaho
Simply put, a commercial lease is a rental agreement allowing business owners to rent commercial space from landlords. If you are aiming at relocating your business facilities with ease you should be familiar with the process. In general, it includes:
- identification of real estate
- evaluation and negotiation
- signing of a commercial lease
However, it’s a long process and requires time and dedication. Also, without proper preparation, you can easily find yourself making mistakes. Fortunately, there is a couple of tips you can follow in order to stay on the right way.
Think about the commercial space that will suit your needs
There are many kinds of commercial properties for various types of businesses. You will need to find what type of properties in Idaho will suit your business needs the best. This is called commercial zoning and is regulated by local zoning laws. Usually, it includes industrial, office, retail, restaurant, and leisure types of properties. If you are looking for a place for a restaurant, then office space will not be appropriate, and so on.
Additionally, for a restaurant type of business, the location is a primary concern. Also, the desired size of the commercial space which will dictate the number of customers and employees you can support. Finally, accessibility is another important factor. For example, the restaurant owners in Boise, Idaho will want a space close to high traffic areas. Even better if there is a warehouse or similar storage options like Peasley Transfer & Storage Idaho. Eventually, if you can have access to a parking lot, then that would be ideal.
Review your financial situation
Consider how much it will cost you to lease a business space in Idaho. Don’t underestimate the moving cost as well as the additional costs on the way. For example, a warehouse when you need to keep the items you don’t use in a safe storage unit. Without planning, it can unexpectedly add up and slow down the transition. To avoid this, the first thing to do is to gather a team of competent people. Your employees are resourceful people who can help you discuss all the aspects and ideas. Also, you can contact your business associates and suppliers, and ask about their experiences.
The next thing is to have a preliminary discussion with your banker to identify the financial options. Explore all the financial possibilities and prepare your budget according to conclusions. For example, if you are leasing in areas like Twin Falls, you will have to pay a deposit. Usually, it’s equal to one month’s rent. Finally, hiring a commercial estate agent is important if you want to effectively research all the market opportunities.
Don’t forget to involve a lawyer
If you want to be absolutely sure you are signing the right contract, then a lawyer is your most important card. But, not just any kind lawyer. You will need the commercial lawyer with knowledge and experience with Idaho leasing regulations. Leasing contracts, and the entire leasing procedure, in fact, can be significantly complex. You don’t want to find yourself with some unexpected costs and under completely harmful conditions.
Find the right commercial estate agent
This is definitely a recommendation because the majority of real estates are facilitated by brokers. Generally, there are two types of brokers in renting:
- Leasing agent – brokers hired by, paid by, and representing the landlords. Therefore, it’s in their best interest to act in the best interest of the landlord.
- Tenant broker – taking a broker’s fee and is not obliged to act in the interest of a tenant. However, they are valuable when looking for suitable listings.
On the other side, you can choose the third option which is to work without a broker. But, unless you are the expert, it’s not recommendable, especially for moving across the border. You will have to search for everything yourself, hunt for listings, and deal with negotiation in person. So, the real estate agent is a better option if you want a better insight into the market and ways to plan your move.
Types of commercial leases in Idaho
Typically, there are three types of the commercial lease which differ in the number of things you need to pay for.
- Full-service lease – the usual type of lease for office buildings where maintaining the property. Simply put, the landlord is responsible for the costs of repairs, maintenance, utilities, taxes, and insurance. By far, this is the best option for tenants.
- Net lease – the option where the landlord charges a lower annual rent. Additionally, the landlord can include other costs depending on if it’s a single, double, or a triple net lease. Usually, not as good as the full service because tenants are paying the costs of maintaining the property.
- Modified gross lease – it’s a middle field between the previous two options. Normally, tenants will pay higher rents because additional costs are included. But, it’s a fixed value and will not be influenced by the increase in taxes, insurance or similar costs. Also, the landlord is covering the costs of janitorial services and utilities.
Negotiating to lease a business space in Idaho
The best practice before starting your negotiation is to find a couple of properties. This way, you can parallelly discuss the terms for each of the properties and choose the best option for you. Without exception, all correspondence about the terms should be in writing. From the tenant’s side, you will need to write a letter of intent. This is a representation of your offer. Or, it can be a reply or counteroffer to the landlord’s proposition. When negotiating, there is a couple of specific things to pay attention to. Be sure you are reading all the fine print. Often time, some unpleasant clauses may be hidden within small letters. Also, review all the termination conditions for both sides, your and your landlord’s rights. Finally, check about exclusive rights within competitors clause, if any. You don’t need your competition to rent the space in the same facility as you are.
Don’t forget, the transition to a new place can take time. Usually, it’s more than we actually expect. Remember to add a few extra days for the entire transition in order to lessen the production downtime during your move. It’s better to run your business in two locations if needed than to pause your entire business. As you can see, it can be demanding to lease a business space in Idaho, but it brings many benefits. Mostly because the state is oriented toward providing fertile soil for growing all kinds of businesses. And this is a great opportunity for anyone willing to expand.