{"id":746,"date":"2021-03-16T22:00:05","date_gmt":"2021-03-16T22:00:05","guid":{"rendered":"https:\/\/hslmrealestateng.com\/?p=746"},"modified":"2021-03-16T22:00:20","modified_gmt":"2021-03-16T22:00:20","slug":"hslm-real-estate-leasing-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/hslmrealestateng.com\/?p=746","title":{"rendered":"HSLM Real Estate Leasing: What you need to know"},"content":{"rendered":"

Leasing commercial real estate in Nigeria can be complicated and finding the optimal space for your business takes time. There are some key aspects to be considered before signing a lease here which we would like to share from our long experience with real estate consulting and management.<\/p>\n

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  1. UNDERSTAND THE AREA<\/li>\n<\/ol>\n

    Study the surrounding areas for potential clients and other opportunities. Location can mean the difference between success and failure, so take time to find the most suitable space. Plan your next move early and plan it well; but if your lease ends soon, it may be best to seek some professional guidance to bridge any knowledge gaps.<\/p>\n

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    1. REBUILDING OWNER AND LANDLORD<\/li>\n<\/ol>\n

      A very important and often overlooked aspect is understanding who the landlord is and who owns the building: a key point as your landlord may not actually own it. Before entering a contract here, it is critical to know with whom, what their financial situation is; and if a tenant-landlord, whether they are making good on their own lease payments to the actual building owner.<\/p>\n

      What can happen if a tenant-landlord fails to make these payments to the owner on time, they stand a very high chance of being foreclosed and evicted? This often-cited example which I\u2019ve third hand witnessed is usually by less scrupulous parties and easily avoided with some smart due diligence.<\/p>\n

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      1. URBAN PLANNING DEVELOPMENT STRATEGY<\/li>\n<\/ol>\n

        Whatever use the landlord has designated your space for, first make sure that designation aligns with local development controls. As they sometimes do not, a little preparatory research will help you side-step any subsequent legal problems and unnecessary distractions.<\/p>\n

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        1. NUISANCE LAWS AND ENVIRONMENT LAWS<\/li>\n<\/ol>\n

          I know most tenants do not take this too seriously, but its highly advisable to know local area nuisance & environmental laws before you sign anything. Review the contract for clauses limiting noise and odors; and for any restrictions on equipment and operational approaches your business may need.<\/p>\n

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          1. COMMERCIAL LEASE TERMS<\/li>\n<\/ol>\n

            The most important aspect of any lease, and maybe the most obvious, is rent structure. Analyzing business overheads and forecasts will clarify whether any new space and location is suitable for your business \u2013 which you well know. However, as always, the devil is in the detail and studying terms are essential when comparing short- and long-term leases. You should be aware of the following aspects:<\/p>\n