Sales and commercial property leasing in Calgary
When it comes to sales and commercial property leasing, experience and market familiarity are vital. At CMS Real Estate Ltd., we conduct research of the current market conditions and provide accurate information to clients. As such, we pay strict attention to the details of the transaction, advocate on behalf of our client and successfully represent the position of our clients with the explicit understanding that the client’s interests always come first.
Each business is different; CMS Real Estate Ltd. recognizes this and we personalize our services in order to realize the client’s business objectives and goals. With our extensive experience, we are able to successfully provide tenants and landlords with creative solutions.
Property analysis is a great way for us at CMS Real Estate Ltd. to gain insight into the financial requirements and feasibility for both the landlords and tenants. We look at the condition of the property, the quality of the tenants that are currently occupying the property, the operating budgets, and maintenance programs.
Landlords
For landlords, the current market conditions and tenant knowledge is critical. At CMS Real Estate Ltd., we take pride in going the extra mile: we qualify prospective tenants, identify the competition, and market the commercial space accordingly. Each step is carefully researched, strategized and executed.
To ensure the landlord is meeting his requirements, we like to discuss long term and short term goals for each property and determine the appropriate capital requirements for each property. By having a thorough understanding of the landlord’s position we are able to find the most appropriate tenant to occupy the premises.
Landlords have certain expectations relating directly to their investment. With the help from the experts at CMS Real Estate Ltd. the landlord can realize these expectations:
- Obtain a desirable return on their investment
- Ensure the investment is protected – this can be done through property management services, as well as having quality, long term tenants in place
- Increase the property value, and
- Pride in ownership
Tenants
Whether a tenant is looking to expand, consolidate, renegotiate an existing lease, relocate or acquire a property lease, knowledge is power. Tenants rely on our market research and analysis of comparable properties to make decisions best suited for their business.
Generally, no two leases are ever the same. Lease forms can be substantially different and it is important to have fully reviewed and understand the lease document. Miscommunication or a misunderstanding can cause unnecessary problems between tenants, landlords, and property managers. The experts at CMS Real Estate Ltd. can help you fully understand your lease agreement and eliminate these issues, allowing for a great relationship with all parties involved.
Frequently Asked Questions
What should be included in a commercial lease agreement?
When it comes to commercial property leasing in Calgary, there are a few components that should be included and agreed upon. Namely:
- Use Clause: Includes all details of how the property will be used.
- Parties Clause: Commercial property leasing in Calgary entails precise information of both the tenant and landlord. The tenant should have their full legal business name and the activities of the business.
- Rent Clause: Rent is determined by market rates and set and negotiated by landlords and tenants based on a rate per square foot. In a retail setting, retail rates can sometimes include an additional rent based on a percentage of sales, but they will also have a base rent. In addition to base rent there will be operating costs calculated by a rate per square foot for the tenant’s proportionate share of the building. The operating costs are usually the property taxes, exterior insurance, and exterior maintenance.
- Term Clause: This will specify both the start and finish dates of the lease as well as due dates for rent payment.
How much does it cost to rent commercial space in Calgary?
This will be based on a variety of factors such as size and location of the property, as well as its current state or condition – among other things.
How does leasing a commercial building work?
While each situation differs depending on property location, type of property, type of business you operate, among other considerations, leasing a commercial building typically involves the following steps:
- You must decide which commercial property is most appropriate for your specific needs (space, location, budget, etc).
- Find a commercial real estate broker, someone who can help you find the ideal property.
- Understand the various kinds of lease agreements so you can determine which is best for your particular situation.
- Negotiate the terms and conditions of your lease agreement, which our experts at CMS Real Estate can help you with.
What questions should I ask when leasing commercial real estate property
It’s essential to be well-informed about potential commercial real estate opportunities. For this reason, knowing the right questions to ask goes a long way. Here are some questions you should consider:
- Who pays for property improvements?
- Are utilities included? If so, which ones?
- Is the lease renewable?
- Is the rent likely to increase?
- How long has the landlord owned the property?
- Who is the owner of the building?
- What are the terms and conditions of the lease?
How do leases work on commercial real estate property?
Commercial leases work by giving tenants the right to legally operate their businesses within the location in question. The ensuing commercial activity is permitted for the duration of the agreed-upon lease period. This deal remains valid so long as the acknowledged payments (rent) are disbursed to the landlord.
How much notice does a commercial real estate landlord need to give?
This question is scenario-dependent; different notices carry different timelines. For example, commercial leases are for a fixed term. As such, the tenant would be obligated to vacate at the term’s end or complete a renewal at the current market rates.
What is a commercial property lease?
A commercial lease is an agreement that permits tenant rights to a specific commercial property. It’s a legally binding contract agreed on by both tenant and landlord. The agreement describes the lease’s terms and conditions that both sides must adhere to.
What commercial properties are available for lease in Calgary?
Calgary has many commercial properties available for lease. So regardless of your business needs, there is something for you. Some of the available properties include:
- Retail
- Warehouse
- Office
- Industrial
- Medical
What does Triple Net mean in a commercial lease?
A triple net lease is a commercial real estate lease where the tenant is to pay the expenses related to the property. These expenses typically refer to property maintenance, insurance and property taxes and comprise the main components of operating costs. In addition to operating costs, the tenant will have their base rent and utilities.
What are the 3 types of commercial real estate leasing?
There are 3 commercial real estate leasing options you may want to familiarize yourself with. They include:
- Gross lease: The tenant’s rent covers all property operating costs in a gross lease. These expenditures can include property taxes, upkeep, utilities, etc. The landlord bears these costs using the lessee’s rent to counter the expenses.
- Net lease: A net lease is a very flexible commercial real estate lease. The tenant bears a share of a property’s insurance fees, property taxes, and maintenance expenses. These leases are typically found in commercial real estate.
- Percentage lease: A lease used in retail; it’s a rental charge hinged on a tenant’s gross sales. In most cases, the rent percentage is only applicable after a specific base rent is paid.
Sales VS. Leasing
Not sure if you should buy or lease? Let CMS Real Estate Ltd. help you make a carefully calculated decision that best suits your needs.
Contact UsCMS Real Estate Ltd. is an industrial and commercial mortgage brokerage in Calgary. As such, we have the experts when it comes to numbers, including mortgage brokers and Certified Commercial Investment Member (CCIM) designations. We can show you your options side-by-side so you can make the best decision for your business. It may be a surprise, but sometimes it’s actually more economical for companies to purchase their building rather than lease it.