real-estate-west-michigan

by James Sulyma

You've worked very hard to grow your home-based business and your efforts are finally paying off. You're now ready for the next step: securing your first dedicated place of business. For every small business owner, the prospect is both exciting and frightening.

Whether your business is of a professional service, wholesale distribution operation, retail oriented, or a food service company, finding and securing just the right location can be an overwhelming task.

The most logical first step is to lease the space you need, rather than making a purchase. This allows you to reserve your available capital to fund the growth of your business and provides greater flexibility for expanding your operations as the need arises.

In today's fast-paced, quick-thinking business world, a prudent entrepreneur understands that "growth" and "risks" are synonymous. Beyond this, the journey to success is a road paved with opportunities that can crumble if little attention is given to the hazardous risks and liabilities assumed along the way.

With this in mind, and much prior to contending with the numerous land mines in any Business Tenant Lease Agreement (Lease), here are some important facts you need to consider before venturing out to secure your new business location:

Typically, real estate agents are compensated directly by the landlord in the form of a commission fee (usually between 3% - 6%) of the total Net Lease amount over the entire Lease term. As a result, you may be shown only the locations that will provide them with the highest commission fee, and quite possibly not the locations that would meet with or come close to your specific search criteria;

Signers beware! There are several provinces and states where a signed Offer to Lease constitutes a legally binding Lease. An Offer to Lease should not be signed without having it reviewed by an independent and knowledgeable professional;

The formatted Lease you receive to sign will be the landlord's. You must keep in mind that is was skillfully prepared by very astute professionals working in the best interest of the landlord - not the tenant.

While the provisions within each Lease can be quite different from one landlord to the next, all are complex binding contracts containing serious risks and liabilities about to be assumed by the business tenant. One of the biggest and most common mistakes a business owner can make is entering into a Lease without first having it properly assessed by an independent professional, and preferably the same knowledgeable professional that provided impartial help with the Offer to Lease;

If your company is a young enterprise that's never leased business space before, and whether a sole proprietorship or an incorporated company, it's not uncommon for a landlord to request a personal guarantee on all responsibilities and obligations as defined throughout the Lease. Even though this is always open to negotiation, very few business owners will pursue removal or even limitations to this hazardous provision, and usually for fear they won't meet the landlord's requirements to secure the space;

Unlike the residential sector, there is no governing body that actually regulates the rights and obligations of the commercial landlord and the business tenant. Therefore, what's stated in the Lease is what determines how the relationship between the two parties will function;

According to statistical survey, a typical commercial or business lawyer spends a very small portion of their time actually structuring and negotiating Lease contracts. It's been stated that many lawyers prefer to direct their energies toward much more lucrative matters such as landlord and tenant disputes.

In conclusion, Lease Agreements have become very complex and hazardous contracts, especially for young businesses. To be sure you get what's best for your business, it makes a lot of sense (and cents) to use the help of professionals dedicated to protecting the needs and rights of Business Tenants. These experts are thorough, responsive and very cost-effective, and they work entirely in your best interest. It's their ultimate goal to ensure you get the best possible Lease Agreement and the peace of mind and freedom you need to focus on growing your company. After all, isn't that what's most important?

It was March, 1979, when our Company founder, Jim Sulyma, after steering his way through many of his own difficulties with locating, securing and occupying Leased space for his growing manufacturing business, realized it was time to make a worthy career change and then began setting his sights on helping other business owners and their companies who were faced with very similar challenges. Jim saw this as a prime opportunity to make full use of his past Real Estate investment, development and management training, and where his greatest interest and passion always stood - the Commercial & Industrial Real Estate Industry.

To learn more about the author and the services of FMG Tenant Solutions please visit http://www.fmgsolutions.com

Article Source: http://EzineArticles.com/?expert=James_Sulyma

Commercial Real Estate Michigan by Betz Properties