Are you scouting for a small business office space for rent or a larger commercial property to lease in Philadelphia and surrounding areas? McSherry Property Management has you covered. We offer commercial properties to lease, commercial places for rent, and office buildings for rent when vacancies are available.
McSherry Property Management specializes in business property, retail property, commercial warehouse, and restaurant property. We provide the same services as an office space rental agency; only we do it much better. With fifty years of experience in property management, we bring the best expertise and software solutions to both renters and owners.
Ask any of our tenants who presently work with McSherry Property Management, and they’ll tell you that our concern for the property is unmatched. We maintain the properties under our care like our own. We ensure that the little details like rental payments and maintenance issues are dealt with professionally and with absolute transparency.
Renting Commercial Property in Philadelphia: The Basics
Making the right commercial property rental is crucial to making any business thrive. Whether you are looking for retail space/retail property or a commercial warehouse, it pays to work with the right property management company. If you are not aware of the legal background of commercial leasing, here’s an essential review:
- A commercial lease takes place between a business tenant and a landlord. In the case of the presence of a property management company, we make arrangements for this commercial lease to take place, and we take care of countless other tasks related to maintenance, collection, etc.
- The commercial lease agreement outlines the responsibilities of both the business tenant and the landlord. The commercial lease agreement is a legally binding document that serves to benefit both parties.
- There are essential differences between a residential lease and a commercial lease. Commercial leases are viewed as contracts between two individuals that are knowledgeable about business and rentals in general. The government generally offers more protection to the tenants of residential properties. Lessees and lessors of commercial properties are expected to know how to negotiate for fair contracts. Consistent with this principle is the fact that those involved in commercial leases have more bargaining power, too.
- The provisions of a commercial lease include the following: provisions of the damage deposit/security deposit, who owns leasehold improvements, the kinds of businesses that may be done in the premises of the leased commercial space, rent and other fees payable, when the rent should be paid, how the rent should be paid, general and specific terms of the tenancy (including the presence of fixed terms and lease renewals), the physical address of the commercial space to be rented and the kind of property being rented. Additional provisions and details may be added as the landlord sees fit, as facilitated by the property management company. Additionally, the commercial lease of business property for rent, commercial property to lease, or small business office space for rent can include additional details such as signing incentives, landlord improvements, lease renewal specifics, tenant improvements, subletting information, property assignation, provisions regarding the termination of the current commercial tenancy and insurance provisions.
- A commercial lease often involves different fees or figures, such as the base rent and the percentage lease. The base rent is the minimum paid by the business tenant to the landlord. The percentage lease, on the other hand, is a type of rental arrangement that is more common in multiple-tenant malls and shopping centers. A percentage lease means the business tenant pays base rent and a percentage of the gross income of the business.
- Gross rent lease is different from base rent. With gross rent lease, the business tenant pays a fixed rent and other expenses, while the landlord shoulders all the other expenses associated with the maintenance of the commercial property. Operating expenses can include utility fees, insurance, expenses from the maintenance of the property, and in some cases, taxes.
- Commercial property is under the jurisdiction of the city where it is located. The residences of the business tenant and the landlord have zero effect on the regulations that govern the commercial property in question.
Commercial Property Rental: Legal Terms
- The legal description refers to how the commercial property is identified in various legal documents, including commercial lease terms. The legal description can also appear in deeds and other legal transactions that occur in real estate.
- Fixtures refer to portions or sections of the Premises that cannot be removed without damaging the property. If the attached portion can be removed, then it will not be deemed a fixture. Some common examples of fixtures are wall-to-wall carpeting and built-in cabinetry.
- Chattels refer to personal properties. Chattel is not real property because it can be moved from one location to another. Chattels include items like window blinds, refrigerators, dishwashers, and computers, too.
- Leasehold improvements are a type of expense done for the permanent improvement of the leased commercial property. It is considered a fixed asset. It also depreciates through time, as in its value about the leased property.
- The purpose of lease refers to the allowable purpose of use that is approved by the landlord. In legal documents, this is usually outlined in the clause/s “permitted use of premises.” Should a business tenant want to use a leased commercial space for other than what was stipulated in the commercial lease agreement, the tenant would have to obtain written permission from the landlord.
- Automatic renewal means the business tenant can make use of leased property in an indefinite manner, as long as the lease agreement is followed. Automatic renewal ends when either the business tenant or the landlord provides notice for the termination of the lease agreement.