Are You Overpaying for Your Business’ Leases?
Lease negotiation can be a big undertaking and the results can have a significant impact on your business.
Each lease contains complex terms that are subject to change, which must be tracked to maintain compliance with the new lease accounting standards, ASC 842 and IFRS 16.
10 Leasing Tips and Warehouse Considerations
This Forbes article outlines 10 things you should know about commercial leasing.
- Make sure the lease agreement has essential terms.
- Condition your breakaway cost in the lease agreement.
- Engage a commercial real estate broker.
- Include additional provisions in your commercial lease.
- Always negotiate for the removal of unfavorable terms.
- Learn from your future neighbors and avoid competition.
- Find out if there are any common maintenance fees.
- Calculate everything before you sign your lease.
- Understand the different types of commercial leases.
- Don't be afraid to walk.
Each industrial property you consider will have its own requirements and tenant obligations. Here are 10 things to consider when leasing a warehouse or industrial space.
- Heating, Ventilation, and Air Conditioning (HVAC)
- Operating Expenses
- Square Footage
- Parking and Loading Areas
- Property Maintenance
- Ceiling Height
- Expansion options
- Floor Load
These are just a few things you should carefully evaluate before signing an industrial or warehouse lease. Taking a closer look at your leases enables you to uncover opportunities for savings.
Lease rules are changing. Hear from Jenny Smith, CPA and MHCS Assurance Director, about the new rules for the accounting of leases going into effect at the end of 2022 for most companies.
Reach out to our team who provides timely, accurate, and relevant financial information critical to your success so you can focus on enhancing operations and growing your business.