How do you measure commercial lease success?

1 Rent and Occupancy Cost

One of the most obvious and important metrics to measure commercial lease success is the rent and occupancy cost. This is the amount of money that you pay or receive for leasing the space, including base rent, operating expenses, taxes, insurance, utilities, maintenance, and any other fees or charges. You want to compare your rent and occupancy cost with the market rate and the value of the space, as well as with your budget and income. A successful lease should provide you with a fair and competitive rent and occupancy cost that aligns with your financial expectations and capabilities.

2 Lease Term and Flexibility

Another metric to measure commercial lease success is the lease term and flexibility. This is the duration and conditions of the lease agreement, such as renewal options, termination rights, rent escalation, subleasing, assignment, and modification clauses. You want to consider how the lease term and flexibility affect your business needs and plans, as well as your risk exposure and bargaining power. A successful lease should offer you a suitable and optimal lease term and flexibility that matches your operational and strategic objectives and gives you enough security and adaptability.

3 Location and Accessibility

A third metric to measure commercial lease success is the location and accessibility of the leased space. This is the geographical and physical position of the space, such as its proximity to your target market, competitors, suppliers, partners, employees, and customers, as well as its visibility, traffic, parking, transportation, and infrastructure. You want to evaluate how the location and accessibility of the space influence your business performance and reputation, as well as your convenience and satisfaction. A successful lease should provide you with a prime and accessible location that enhances your competitive advantage and customer loyalty.

4 Space Quality and Functionality

A fourth metric to measure commercial lease success is the space quality and functionality. This is the condition and design of the space, such as its size, layout, configuration, amenities, features, utilities, equipment, furniture, and fixtures. You want to assess how the space quality and functionality meet your business requirements and standards, as well as your comfort and productivity. A successful lease should offer you a high-quality and functional space that supports your business operations and activities and creates a positive and professional image.

5 Tenant-Landlord Relationship

A fifth metric to measure commercial lease success is the tenant-landlord relationship. This is the level and quality of communication, cooperation, trust, respect, and support between you and your landlord or tenant. You want to monitor how the tenant-landlord relationship affects your lease experience and outcome, as well as your legal rights and obligations. A successful lease should foster a strong and healthy tenant-landlord relationship that facilitates mutual understanding and benefit and prevents or resolves conflicts and disputes.

6 Business Growth and Profitability

A sixth and final metric to measure commercial lease success is the business growth and profitability. This is the impact and contribution of the lease agreement on your business development and performance, such as your revenue, expenses, cash flow, market share, customer base, brand awareness, and innovation. You want to measure how the lease agreement helps you achieve your business goals and vision, as well as your return on investment and value creation. A successful lease should enable and accelerate your business growth and profitability and align with your mission and values.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?