Business owners have more to think about than selling goods and services to customers. They have to consider supply chains, human resources, and even the physical location of their business. Only by appropriately analyzing and addressing these matters can a business focus on what’s most important: its business philosophy and profits. Yet, business owners are often faced with significant challenges that must be overcome if they want to be successful. Sometimes these challenges deal with commercial real estate.
The owners of the Water Campus office building may be in this situation now. The 94,000 square foot development is having difficulty leasing its office space since the downtown office market seems to be dwindling. In fact, the building, which is still under construction, still has 80,000 square feet of room up for lease, with more buildings planned as part of the development.
One reason the development may be struggling is the fact that its lease rates are pretty high compared to other downtown spaces. The $30 per square foot rate is justifiable, according to some, considering the building’s newness and its attractiveness. Yet, even if the space is worth that much, the question becomes whether the market can support it.
These considerations are paramount when a business is trying to decide whether to sign a commercial lease. Other terms of a lease, including restrictions on the property’s use, can have very real ramifications for a business and its intended goals. This is why businesses that are looking to lease commercial real estate, as well as those engaged in the business of leasing these properties, should carefully consider having a legal professional help guide them through the process. Only then can these individuals ensure that they are entering into an agreement that furthers their best interests.