Are you ready for your first official commercial space? Figuring out commercial lease details can be confusing. Do you go short-term or long-term? Many people look long-term when planning a business, but a short-term lease can be better for some companies. Once you find your ideal office space, consider the lease terms to best suit your needs.
Flexibility is one of the biggest advantages of short-term leases for your new business. No matter how much you plan and how hard you work, you can’t predict the future completely. Many businesses fail in the first year. If your company doesn’t make it, being stuck in a long-term lease can cost you a lot of money. You may have the option to sublease the space, but it’s still a headache.
A more positive outcome is your business growing beyond your wildest expectations. Your company may be just what the market needs. That growth is great, but your first commercial space may quickly become too small to keep up. If you sign a short-term lease, you can easily move on to bigger and better spaces. You don’t have to deal with subleasing or breaking a lease just to get the increased space you need.
You may have other reasons for moving your business soon after leasing your first space. You might decide your first location doesn’t have the foot traffic you want. A prime spot might open up in your ideal neighborhood. Whatever the reason, moving your business is much easier when you have a short-term lease.
Short-term commercial leases have some drawbacks. You can expect to pay more per month than you would with a longer lease. Finding a company that offers short-term leases can also be challenging. Property management companies usually want tenants who plan to stay to cut down on turnover. You also get the security of knowing the space is yours and your lease payment is set with a longer lease term.
Before committing to a long commercial lease term, consider your business needs. Weighing the pros and cons of a shorter lease helps you decide if it’s right for you.