10 PITFALLS TO AVOID WHEN LEASING YOUR BUILDING

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1. Don't try to lease out your space without knowing the current marketplace. Have you seen a current rental survey for your location? If you set the rent too high you will probably have a vacancy for a long time. If you set the rent to low you are cheating yourself.
2. Have you chosen the right Broker? Is that person experienced in leasing commercial space? What is that person's track record in leasing? Is your Broker experienced in negotiations and dealing with the myriad of lease issues that may arise?
3. Know how and when the property will be marketed? How many data bases or multiple listing services will your property appear on? Will a sign be put up and is so when? Will flyers be sent out?
4. Don't ignore your Broker's communication skills and procedures. Is your Broker easy to reach? Does that person communicate well? Will you be leaving messages and waiting for days for an answer?
5. Don't market the property without knowing what the zoning is for your property? What possible uses can go into it? Perhaps there is an especially good use of the space that you have not thought about.
6. Don't focus exclusively on the price and terms when you receive an offer. Equally important is the track record and business experience of the prospective tenant. What is the proposed use of the space? Is it right for your property? Will it enhance your property and be well received by other tenants?
7. Don't accept a tenant without knowing what the creditworthiness is of the tenant. Are you checking the financial background and credit of the principals?
8. Don't ignore how extensive the Tenant Improvements are that are requested and who is paying for them. Will the TI's help your building or be a problem when the tenant leaves? Should the tenant be required to restore the space to current standards upon lease expiration?
9. Don't arbitrarily offer or accept options in the lease. How is it beneficial for you to give options? Do you know that options usually favor the tenant?
10. Don't use just any lease form. Is your lease written to protect you the Lessor in mind? Do you understand the form that you are using? It is usually a good idea to have one lease form that you understand and have approved for all of your tenants in the building. Standardization when possible makes the operation of your property much smoother.

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