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Commercial Leasing Opportunities in Redding

The Redding commercial real estate market offers numerous lease opportunities. These opportunities include but are not limited to retail shops, restaurants, industrial shops, office space, and more. For current listings please visit Coldwell Banker Commercial Real Estate.

 

How to Find a Great Lease Property for Your Business in Redding

The best way to find a great location for your business is to visit with a qualified and experienced commercial real estate professional.  Meeting with a professional realtor will take days and weeks off of your search efforts.  The Commercial realtor will have knowledge of the commercial property available in the Redding area for lease and for purchase and will be able to assist you with legal, financial and market consideration.  If you would like to search online, for commercial real estate in the Redding and Shasta County area there are many sites available.  Just google "Commercial Real Estate in Redding"

Pick the Best Site for Your Business Lease in Redding

Location, Location, Location!  Picking the right location can be the difference between feast and famine for your business.  It is very important that you locate your business in the best area possible to conduct business. If you are in the retail business, then looking at the different retail centers in Redding is of critical importance.   Working with your local commercial realtor will make the process of finding the best location easier.   You want to find a space that is easily accessible for your customers and one that allows for proper signage for your business.   Make sure the location has all the facilities your business needs whether it be good air conditioning, high speed internet or public parking.  Proper zoning should be checked into also depending on the type of business you have.  Here's a link to a good article on Picking a good location for your business

How to Decide Whether to Purchase or Lease Space for Your Business

There are three important steps for deciding whether to purchase or lease commercial real estate in Redding.  The first step is to "Study the Market"  A thorough Market Analysis will include studying the current supply and demand of commercial property for sale in Redding.  If the demand for property is high and rents are also on the rise, then it's a good time to consider purchasing and vice versa.  If the market conditions don't support rising real estate prices, then its better to consider leasing. 

The second step is to do a "Financial Analysis".  You must consider how much square footage of commercial space you need and what the cost per square foot of the space will be.   The comprehensive financial analysis will help you determine if the after tax cost of owning versus leasing makes more sense or not.  If you are looking at purchasing or building, you may be planning additional space for growth and subleasing to other businesses on an interim basis.  These important considerations should be factored into your decision making process.  

The third step is to "List Other Factors".  Is the location right?  Is the property outside the building large enough for you to conduct business?  Is it better for you to build rather than purchase?  How important is timing?  For many businesses it is far easier and quicker to lease simply given the fact that you can move in tomorrow and leave if it doesn't work out.  Some businesses have space requirement that make owning your property an absolute necessity. It is important to list the other considerations involved in the lease/purchase decision before making a final choice on whether to lease or purchase your commercial space.  For more information on the Lease Purchase Decision, read this article.

Timing is a critical component of purchasing commercial real estate.  In our current uncertain economy, many businesses are choosing to lease because lease rates are as low as they have been in years.   An important consideration is what direction do you think prices are going.  Investors have to pick the right time in order to maximize the ROI on their commercial real estate purchases.  While the current market has great buys, potential purchasers don't know which way the market is going, up or down.  The best time to purchase is when the economy is on the upswing.  If you are thinking about purchasing a building contact a commercial real estate professional for help and advice. 

Why should a business lease?  A major reason is the investment necessary and the unknown of whether the property is going to appreciate or decline in value over time.   With leasing you can put the extra dollars away for emergency planning where property owners often have unplanned for building maintenance costs which often can burden the business.  If on the other hand, your business is very profitable, then purchasing becomes a good investment decision.  Another benefit of ownership are the many tax incentives such as depreciation of the property for tax purposes and, over the longer term, asset appreciation.

Commercial real property leases fall into one of a few different kinds: Office, Retail, Ground Lease, and  Warehouse.  Some leases are considered  Mixed Use when the purpose of the property varies from one business to another.  Each has certain characteristics, although Ground leases may differ somewhat, taking on some characteristics of Retail leasing when associated with a retail project, like a shopping center; and although Mixed Use projects can vary greatly depending upon the various inclusions and the size of the overall project, among other things. It is widely appreciated by those who specialize in commercial leasing, including the business side and the legal side, that, other than hybrids such as Mixed Use project leasing, Retail leasing can have the most complexity.

Retail leasing often requires the parties to address issues typically not addressed at all in other types of commercial leasing which have no retail component. These challenges include topics such as exclusives, covenants, radius restrictions on near-by self-competition, co-tenancy, no-build areas and visibility corridors, parking ratio assurances, and signage concerns (including pylons, monuments, and criteria).

Advantages of Leasing

For businesses, leasing property may have significant financial benefits:

  • Leasing is less capital-intensive than purchasing, so if a business has constraints on its capital, it can grow more rapidly by leasing property than it could by purchasing the property outright.
  • Capital assets may fluctuate in value. Leasing shifts risks to the lessor, but if the property market has shown steady growth over time, a business that depends on leased property is sacrificing capital gains.
  • Because of investments which are done with leasing, new businesses are formed, and unemployment is decreased.
  • Leasing may provide more flexibility to a business which expects to grow or move in the relatively short term, because a lessee is not usually obliged to renew a lease at the end of its term.
  • In some cases a lease may be the only practical option; such as for a small business that wishes to locate in a large office building within tight locational parameters.
  • Depreciation of capital assets has different tax and financial reporting treatment from ordinary business expenses. Lease payments are considered expenses, which can be set off against revenue when calculating taxable profit at the end of the relevant tax accounting period.

Disadvantages of Leasing

For businesses, leasing property may have significant drawbacks:

  • A net lease may shift some or all of the maintenance costs onto the tenant.
  • Circumstances sometimes dictate that a business change its operations before it can lease.  It can be expensive and difficult to terminate a lease. In some cases, a business may be able to sublet property no longer required, but this may not recoup the costs of the original lease, and, in any event, usually requires the consent of the original lessor. Tactical legal considerations usually make it expedient for lessees to default on their leases. The loss of book value is small and any litigation can usually be settled on advantageous terms. This is an improvement on the position for those companies owning their own property. Although it can be easier for a business to sell property if it has the time, forced sales frequently realise lower prices and can seriously affect book value.
  • If the business is successful, lessors may demand higher rental payments when leases come up for renewal. If the value of the business is tied to the use of that particular property, the lessor has a significant advantage over the lessee in negotiations.

Redding Commercial Realtor®

Contact a Realtor® in Redding

 

Coldwell Banker Commercial C & C Properties
2155 Larkspur Lane, Suite A
Redding, CA 96002
Office: (530) 222-2011
Fax: (530) 222-1581