How long are Commercial/Industrial leases?
Most small businesses are constantly changing. They are either growing larger or growing smaller, and need flexibility. They usually prefer short term leases of 1 or 2 years initially. If their business stabilises, and they settle into the property, they may stay on for up to 5 years or more. On average, smaller tenancy turnover would be about once every 3 years. Larger businesses have high relocation costs, and are more stable. They usually prefer lease terms of at least 5 years, plus option periods to extend the lease. It is not uncommon for the larger tenancies to continue for 10 years or more at the same premises.
Related Questions
- The Foundation expects that fellowship training be obtained in an academic setting, as opposed to a commercial or an industrial lab. How does the Foundation view a non-profit research institute?
- What is the maximum length of a cul-de-sac street for commercial or industrial developments?
- Does the Health Department regulate heat in offices, commercial, or industrial areas?
