Contrary to popular belief, most landlords won’t just rent out their commercial space to the first tenant who offers to lease it. In most cases, landlords have a wide variety of variables they consider when deciding whether or not to accept a lease. This can include everything from reviewing tax returns, to background checks, to credit reports, to checking references or even just connecting well personally with the prospective tenant.
It helps to be prepared before trying to lease office or retail space so you can make the best first impression possible. So, to help our clients and readers better understand and prepare for what goes on behind the scenes when a lease is submitted, we’ve put together a list of the top 5 things most commercial landlords will look for in the perfect tenant.
1) Financial Strength
The first thing most commercial landlords are going to look at when you submit an application for a lease is your credit history and financials. They want to see that you are starting out your business on a solid financial footing.
2) A Good Business Plan
The next thing many commercial landlords want to see from potential tenants is a solid business plan. They want to see that you have done your homework and have prepared a well thought out and well planned concept that will be sure to thrive in that area.
The next consideration they will often take into account is the other co-tenancy of the complex you are requesting to lease space in and how well your business concept will compliment the other existing tenants in that center.
4) Successful Operator
In addition to a solid business plan, most commercial landlords are going to want to see that you have a history of successful business operation. They want to know that you have the experience and skills to back up your plan and put it into action.
5) Cooperative Tenant
Lastly, the commercial landlord will mostly likely try to determine if you are going to be a cooperative tenant who will be a cheerleader for the center and not become a problem for the property management to deal with later on down the road.
Making sure to keep these factors in mind the next time you lease commercial office or retail space will help increase your chance of being qualified and of getting the best deal and terms possible when you sign your lease!
CRUNKLETON & ASSOCIATES