There will come a time when Atlanta retail space lease/rent will need to be reviewed. A market rent review in commercial property can sometime pose some challenges. If the property is in choice location, it can be difficult to negotiate a review or increase rent. However, there are some things to bear in mind before a review should be carried out. By this, we mean the pointers that reveal the right time to increase the rent.
Check rent/lease agreement
Of course, this is the first thing to check before going ahead with rent increase. As an Atlanta commercial property manager, you should always read the lease before you start a market review. Ensure you give particular attention to the rent review clause and look for review process in the document as well. Doing it the right way and issuing notices to the tenant according to the dictate of the agreement is important to the property rent review process.
Inspect the property
It is import to inspect the property to get a current update and perspective on the presentation and functionality of the property. Pay attention to enhancements or challenges to occupancy. You should equally find out anything that adds to or removes from the current rent value of the Atlanta commercial property.
Check current trend in Atlanta retail space lease
What is the trend in Atlanta commercial real estate sale? You need to find this out exactly. Are similar commercial buildings increasing rent and why? These questions need be answered before any review is started. Sometimes, some unforeseen events may cause an increase in property rent in the your area. This, however, must first be analyze to see if a review in rent is necessary.
Also, look at increase in amenities in the area. Perhaps, there are now many grocery stores, supermarkets, fitness centers and so on. All these should be looked at because they have impact on rent for commercial properties.
Check tenancy area and size of the property
It is important to have an up to date survey of the tenancy area and size of premises. You should also ensure that the tenants who occupy the Atlanta investment properties are not encroaching or operating outside the lease area. Are the areas of the premise in original layout or have there been some amendments to the leased areas? That should be considered in the review.
Get details of current calculations
As an Atlanta property manager, you need to get details of the current rent and understand if it is calculated on a gross, net, or gross on year to year basis. Outgoings may have impact on the current rent. If that is the case, you should identify the outgoings value so they can be removed from the gross rent total. This enables property management Atlanta GA to set and compare net rents with net rents. This will make rent more easy to calculate and negotiate.
So, before you attempt rent review for Atlanta retail space lease, the above should be taken into consideration