Are you looking for a new location for your business? There are a lot of factors you need to take into consideration when choosing your new location. You need to worry about having enough space, where you’re going to put everything, hire new employees, establish local relationships, and so much more. One additional thing you’re going to have to figure out is how long of a lease you would like to sign. At Tomarchio Enterprises, we’ve helped a lot of business owners in Maryland, and wanted to talk about what you should take into account when thinking about how long you want your store lease to be.
How Long are Typical Commercial Leases?
Every commercial lease is different, but most of them fall between one and ten years, with five years probably being the most common lease length. You should discuss with your Maryland commercial real estate agent what your ideal lease length is. The process of finding someone to rent a space can be difficult for a landlord, so most of them try to have their tenants sign long-term leases.
Short-Term Leases Are Three Years or Less
Depending on the type of business you own, a short-term lease may be what you’re looking for. The primary benefit of a short-term lease is that you’re not financially tied to the space for a longer period of time. If you’re unsure of whether or not the location will pan out long-term, or if you’re planning to open a pop-up store of some kind, a short-term lease may be exactly what you need.
The Longer Your Lease, the Better Your Rate Will Likely Be
Since it can be so difficult and costly for landlords to find new tenants, and they try to have tenants enter into long-term leases, there are financial incentives often built in. When a space is occupied, a landlord doesn’t need to worry about filling it, so in turn, many landlords offer discounted rates, the longer you enter into a lease with them.
Benefits of Signing a Long-Term Commercial Lease
Besides receiving a better rate, there are a few other advantages to signing a long-term commercial lease in Maryland. One of the biggest benefits is that you’ll be able to keep your business in one location for a number of years, which means you will be very easy for customers to find, and they will associate your business with that location. Another benefit is that you can save on the moving costs you would incur if you had to leave your location after only a short amount of time.
Consult with an Experienced Real Estate Expert in Maryland
Do you need some help finding a new store location? Need some help understanding the lease terms? Once you sign a lease, you are legally binded by it, so we always advise business owners not to put pen to paper lightly, and not without completely understanding the terms of a lease. At Tomarchio Enterprises, we have a lot of great commercial properties available for rent. We encourage you to give us a call at (410-861-8320) or contact us online.