If your business needs a short-term rental or a smaller space, you have your work cut out for you. Typically, the minimum lease term for a commercial real estate renting is three years. Nevertheless, this does not work for every type of business. When it comes to startups or small companies, flexibility is key as they establish themselves within the market. Additionally, these types of businesses don’t usually need a lot of space, so they are often looking for a space that is smaller. This can be hard to come by, as most rentable space is a minimum of 1,000 square feet.
When these types of businesses start looking for office space to rent, they often find that they have limited options. In general, landlords prefer long-term rents, because month-to-month or year-long rents are not to their advantage. Finding a short-term space for your business requires extensive searching, and you may not find anything that meets your needs.
Even if you do find a landlord willing to rent a space to you, you are at a distinct disadvantage during tenant negotiations. You have no leverage, and therefore, may have to take a higher rent than your neighbours. Not only that, once your lease is up, you are particularly vulnerable to a spike in rent if you want to renew your lease.
Related Post: Give your empty retail space for rent!
If you are looking for a smaller renting space or a more flexible renting, it is wise to use our online platform. We can help you find a commercial space that suits your needs.
Be in the market where you want to be…Locally, Regionally, Nationally!
If you are looking for a temporary space for a day, week, month or year.
We can help. Myrsa’s portfolio of outdoor shopping locations provides advantageous visibility in prime markets across the country. Whether you are looking for temporary renting or an advertising opportunity, we have the perfect location for your business.
Reach and surpass your business goals:
Expand and test a market
Build a customer base
Transition into a long-term tenant
Advantages to a short-term lease:
One day to six-month terms
No long-term commitments
Limited start-up costs
Temporary inline space (pop-up shops and offices):
Seasonal retail stores
Outlet & Overstock stores
Parking lot space:
Christmas tree sales
Product sampling & tastings
Signage & Sponsorships:
Banner/light pole ads
Event & seasonal sponsorships
Environmental & Wireless technology:
All short-term deals require the following:
A license agreement signed by both parties
A Certificate of Insurance
A security deposit
Professionally printed signage
Advantages of a Short-Term Commercial Real Estate Renting
- Flexibility – For startup businesses that are growing quickly you never know if and when you will need more or less space. If you decide you don’t like a specific location or space or you get that big deal and need to hire 30 more people you can easily pick up and relocate with a short-term lease.
- Contingency – It’s a known fact that most companies fail within the first 12-24 months of being in business. Having a short-term rent will give you the ability to cut your losses and not have to pay the landlord a large sum of money to cancel the lease.
As you can see there are many Pros to signing short-term commercial leases. If you are not sure you want to remain in the same location or expect future growth or are just unsure about the future of the company then a short-term renting might be the best option. If your business is more established, financially stable, and not expecting to expand rapidly then you are better suited for a long-term commercial real estate lease.
In the meantime, if you are looking for commercial real estate then log on to Myrsa and start renting.