Why consider leasing property for your business?

Leasing property can be a great option for businesses looking for flexibility and cost-effectiveness. Unlike renting, leasing offers the tenant a longer-term commitment and more control over the property. In this article, we will discuss why a business should consider leasing property, how it differs from renting, and the pros and cons compared to buying.

If you are a business owner in West Virginia looking to lease a commercial space, reach out to the team at The PM Company. Our personable agents are here to work with you to find the perfect location. We’re a family-owned business that knows the value of one-on-one service. It’s why we’ve been West Virginia’s trusted property broker for generations. 

Renting vs. Leasing Property for Your Business

Many people use the terms leasing and renting interchangeably, but there are some significant differences between the two. Renting typically refers to a short-term agreement, often on a month-to-month basis, where the tenant pays a fixed amount each month to use the property. Leasing, on the other hand, refers to a longer-term agreement, usually for one year or more, where the tenant has more control over the property and is responsible for maintenance and repairs.

Leasing offers more stability and predictability than renting. Tenants who sign a lease agreement have the assurance that they can occupy the property for a set period of time, without the landlord increasing the rent or asking them to vacate the premises. Additionally, leasing allows businesses to customize the space to meet their specific needs and requirements, such as adding partitions or installing equipment.

Why You Should Consider Leasing Property for Your Business

1. Lower upfront costs

One of the biggest advantages of leasing property for your business is the lower upfront costs compared to buying. Leasing requires a smaller down payment and typically does not require a large cash outlay for repairs or renovations.

2. Flexibility

Leasing property offers businesses more flexibility to relocate or expand their operations without the burden of selling a property. If the business needs to move or downsize, they can simply end their lease agreement at the end of the term.

3. No property ownership responsibilities

When a business leases a property, they are not responsible for property maintenance, taxes, or insurance. This can significantly reduce the overhead costs of operating a business.

4. Access to prime locations

Leasing can give businesses access to prime locations in high traffic areas that may not be available for purchase. This can be particularly beneficial for small businesses that want to establish a presence in a desirable location without incurring high costs.

When Leasing Property Isn’t for You

1. Limited control

While leasing offers business tenants more control over the property compared to renting, they are still limited in terms of making major changes or modifications to the property without the landlord’s permission. Perhaps buying is for you.

2. Potential rent increases

Leasing agreements often include rent escalation clauses that allow the landlord to increase the rent at specific intervals. This can make it difficult for businesses to budget for future expenses.

3. No equity

Unlike owning a property, leasing does not allow businesses to build equity or receive any financial benefits from property appreciation

Buying vs. Leasing Property for Your Business

Buying property requires a larger capital investment than leasing, but comes with its own benefits. Deciding between buying and leasing property for your business is a significant decision for anyone. We recommend you speak with The PM Company to discuss your specific needs.

In general, buying offers the benefit of building equity and long-term financial stability, but it requires a significant cash outlay and long-term commitment. Leasing for your business, on the other hand, offers more flexibility and lower upfront costs, but it does not provide the long-term financial benefits of property ownership.

Ultimately, the decision between buying and leasing business property depends on the individual needs and circumstances of the business. For businesses that value flexibility and cost-effectiveness, leasing can be a great option. However, for businesses that have long-term stability and financial security as their top priorities, buying may be the better choice.

Lease Business Property through The PM Company

Leasing property can be a smart choice for businesses that want flexibility, lower upfront costs, and access to prime locations. While it does have its limitations and potential drawbacks, leasing can provide a viable alternative to buying for businesses that prioritize short-term needs over long-term financial benefits.

Our team is constantly updating our database of West Virginia commercial properties. Whether you’re seeking to rent, lease, or buy, we have options for you. Our spaces span industries from medical to retail. Tell us your needs, and we’ll do our best to help.

Lease a Small Office Space in West Virginia

Leasing a small office space can be a great option for businesses looking for a flexible, cost-effective solution for their workspace needs. However, it’s important to weigh the pros and cons before making a decision.

The best approach is to first list out the needs of your business. What aspects are must-haves, and what features are non-essential? A small t-shirt business is going to have different needs from a three-person accounting firm. 

After you do some thinking on your small office space needs, give the PMC team a call. We have all the latest listings on West Virginia offices. We’ll let you know exactly when the perfect building comes on the market. Plus, our friendly service team will make you feel right at home.

Ready to lease a small office space in West Virginia? Give us a call today.

Pros of Leasing a Small Office Space

Bigger isn’t always better. When leasing an office space in West Virginia, you’ll want to aim for efficiency. Purchase enough space to get the job done, but not too much so that you’re wasting money on rent. Here are a few pros of leasing a small office space.

• Flexibility: Leasing a small office space in West Virginia allows businesses to have a physical location without the long-term commitment of buying or renting a larger space. This can be especially beneficial for businesses that are just starting out or are unsure of their future growth plans.

• Cost-effective: Leasing a small office space can be more affordable than renting or buying a larger space. Additionally, many landlords will include utilities and maintenance in the cost of the lease, which can save businesses money on their monthly expenses.

• Professional appearance: Having a dedicated office space can help businesses present a more professional image to clients and customers.

• Amenities: Many small office spaces come with amenities such as conference rooms, kitchen facilities, and break rooms that can be shared among the tenants.

• Location: Leasing a small office space can be a great way for businesses to establish themselves in a desirable location that they would not be able to afford to buy outright.

Cons of Leasing a Small Office Space

Not every team functions well when people are sharing offices or bumping elbows in the break room. We all need a little space to breathe sometimes. While there are many pros of renting a small office space, there are a few cons to consider as well. If these items stand out to you, you may need to consider leasing a larger space. 

• Limited space: Small office spaces may not be able to accommodate businesses that need a lot of room for employees or equipment.

• Lack of control: Businesses that lease a small office space do not have control over the building or the space and may be subject to the landlord’s rules and regulations.

• Limited growth potential: Leasing a small office space may not provide the same opportunities for growth as owning or renting a larger space.

• Lack of customization: Businesses that lease a small office space may not be able to make significant changes to the space without the landlord’s permission.

• Lease terms: Businesses may need to sign a long-term lease, which can limit their flexibility in the future. If the prospect of a lease doesn’t appeal to you, consider buying instead.

Find the Perfectly Sized Office Space through The PM Company

In conclusion, leasing a small office space can be a great option for businesses looking for a flexible, cost-effective solution for their workspace needs. However, it’s important to weigh the pros and cons and consider your long-term growth plans before making a decision. It’s always important to read the lease agreement carefully and negotiate the terms before signing. 

We would love to work with you to find your next business location. Please view our latest West Virginia property listings and then reach out to our team through our contact page.

Houses for Sale in Vienna, WV

The PM Company is a trusted real estate broker in West Virginia. We’re a local, family-owned business. We’ve been working in the area for generations and are proud of our commitment to customer service.

We know buying a home can be a stressful process. But it doesn’t have to be when you work with The PM Company. 

Today, we’re going to give you a rundown of houses for sale in Vienna, WV. We’re going to share a few details about the local housing market along with some popular areas. Whether you’re moving to Vienna from out of town or you’ve lived here your entire life, here’s what you need to know about houses for sale in Vienna, WV.

Where is Vienna, WV?

Vienna is a small town of about 10,000 people nestled right along the east bank of the Ohio River. It sits on the northwest edge of West Virginia in Wood County (also a quick drive from Ohio). Many people consider Vienna a northern suburb of Parkersburg, WV.

What is the Cost to Buy a House for Sale in Vienna, WV?

Housing in Vienna is well below the national average. The median home price in the USA is $428,000 with West Virginia showing a median home price of $137,000. 

Statistics show that Vienna, specifically, has homes for sale at around $143,000 or $100 a square foot. The low cost of an average home makes Vienna an attractive place to live. Moreover, the cost of living is 21% lower than other American cities. Therefore, you may be able to get by with less or save more for retirement or a later home upgrade. 

What is it Like to Live in Vienna, WV?

Vienna, WV, is a small, family-friendly town. If you want the hustle and bustle of a big city like New York or Chicago, this is not the place for you. But if you want a quiet place to live near the river and woods with a quaint, local feel, then Vienna might be your ideal location. 

Most residents report that the schools are decent and the small-town feel is great for raising children. The pace of life in this city is an ideal balance between big city and rural countryside. 

What are a Few Landmarks in Vienna, WV?

When looking at houses for sale in Vienna, WV, you’ll want to pay attention to nearby landmarks and attractions. Are you more of a shopper who frequently picks up groceries for your family or do you prefer being close to nature? Take a glance at this list of local attractions when choosing a house for sale in Vienna.

The Ohio River

The entire town of Vienna runs north-south along the Ohio River. As long as you’re on the west side, you’ll almost always be a few minutes from river access. If you own a boat, you can also use one of the public boat launch points nearby.

Neal Island

Neal Island is an interesting bar island right off the Vienna shoreline. It’s a piece of interesting history, having been home to early settlers, commodity speculators, and a small community. Now, the island is managed by the US Fish and Wildlife Service. Learn more about Neal Island here.

Parkersburg Country Club

If golf is your game, you may want to become a member at the Parkersburg Country Club, located in north Vienna. It was the first country club to be incorporated in West Virginia and currently offers tennis, swimming, and golf among other activities.

McDonough Wildlife Refuge

The McDonough Wildlife Refuge lies to the east of Vienna and is a beautiful place for the family to get outdoors and learn about nature. The refuge features hiking, duck marshes, and educational materials to expand the mind. 

Grand Central Mall

South Vienna is where you’ll find most of the town’s shopping opportunities. While malls may not be as popular as they once were, Grand Central Mall is still a lovely place to spend an afternoon and pick up some much-needed items. Vienna is opening up new stores each and every year, so check in to see what’s new!

Browse Houses for Sale in Vienna, WV

Now that you have a brief overview of life in Vienna, it’s time to browse Vienna houses for sale. We don’t limit our services to just residential buyers either. We can help businesses and landlords find incredible real estate deals across the Mid-Ohio Valley as well. To browse our current selection of properties, click here.

The PM Company is constantly updating our real estate inventory. And in this market, homes can go quickly! Please reach out today with your ideal home vision so that we can put you on our calling list. Be the first to know about new houses for sale in Vienna and the greater Parkersburg area.

What is Property Development?

Fundamentally, property development is about adding value to land by renovating and reimagining its uses. As our cities and communities expand, property development is a necessary process. New grocery stores need to be built. Light residential areas make way for apartment buildings. A startup renovates an old warehouse into an office.

The most successful property developers recognize trends before they happen. They notice how the city is growing and how demographics will shift. For example, a property developer in the 1940s might have made good money setting up a bowling alley before the sport reached its peak popularity.

In this article, we answer, “What is property development?” The team at the PM Company hopes this information helps you begin the journey of investing in and improving upon your property.

Why Develop Property?

There are many benefits to property development. Speak to a representative at the PM company to see if property development is right for you.

1. Financial Reward

Real estate is a lucrative investment opportunity. Because the population is always growing, people will need spaces to live and work in. Moreover, cities are becoming more and more crowded, meaning wealthy individuals will pay higher prices to live in desirable areas. Many people develop property in order to make money.

2. Business Needs

Each business has its own unique building requirements. A retail store might find an attractively-priced space that needs walls removed and storage installed. A business that has grown rapidly over the past year might need a larger space – they might even build a brand new headquarters. A well-considered property can be a great boom to a business.

3. Community Development

Finally, some companies will develop properties in order to benefit the local community. Someone might demolish a condemned house and make way for a community garden. Others will renovate commercial properties in order to spur business growth. For years, the PM Company has been active in supporting our local communities.

What Does the Property Development Process Look Like?

Property development is not an easy task. It requires deep planning and execution. Before deciding whether to start developing a property, consider the following steps. 

1. Understand Your Goal

Will you be building a brand new structure or will you renovate an existing structure? What are your needs? For example, a company looking to build a new apartment will need to calculate the number of units times the expected rent to be charged to see if it’s a financially feasible project. Get clear on your goal for property development. 

2. Find Funding

If you’re considering developing a piece of property, plan out your capital needs. Find investors and see if there are any government grants that can help with the development process. Speak with a lawyer about setting up an LLC or another corporate entity so that you minimize personal liability. Too many development projects fail because the leaders failed to adequately plan for financial setbacks.

3. Get the Proper City Documents

Zoning is a complex reality of property development. Not only do you have residential, commercial, and industrial zones, but there are different regulations depending on where in the county you build or what kind of structure you’re building. You’ll need to check usage allowances, building height requirements, noise considerations, and more.

You may also want to discuss your plans with the local community. Not every resident will be excited about your new project, and local resistance can cause headaches and delays. 

4. Find a Trusted Contractor or Construction Company

Who is going to complete the physical development work? Make sure you find a construction company that can complete the project on time and under budget. Do you have specific needs for your property, like workshop equipment or electrical setups? Discuss these needs with your contractor before the project begins.

5. Get Started Developing Your Property

Property development is rarely a smooth process. Once you start, many things can go wrong. But for those who persevere, there are many rewards. Remember your original goal and keep pressing on. Don’t let minor setbacks discourage you. 

What is the Average Cost to Develop a Commercial Building?

This is a difficult question to answer for many reasons. Are we talking about a new build or a renovation? Is this building located downtown or in a rural community? Costs vary state by state.

That said, you can expect to pay $20 to $50 per square foot to purchase an existing commercial building. The $50 per square foot figure factors in renovation fees and custom work. The price will vary based on the type of building. A stud-frame location will cost less than a steel-frame warehouse. 

The PM Company is Here to Help You With Your Property Development Needs

The PM Company is your go-to resource for property development in the Mid-Ohio Valley. Our company has been family-owned for generations, which means we understand the area and the local businesses.

We have multiple properties available for development and leasing. Our clients are always provided the best advice and guidance as they choose the location that’s best for them. From medical centers to commercial plazas, we offer a wide range of quality properties. 

Questions? Please ask! Our team is known for our friendly and professional service. We’re happy to come alongside new and veteran property developers as they seek to obtain a new or upgraded location.

Buying vs. Leasing Commercial Real Estate: The Pros and Cons

Which is better, buying or leasing? As a business owner, you need to consider various factors before deciding which approach will work for you. Generally, your decision comes down to the amount of money you will be spending or saving. But figuring out where those savings come from is the tricky part. You must consider many things, including the stage of your business, monthly payments, financing options, and cash flow. This article will discuss the factors you need to consider before leasing or buying a building.

Monthly payments vs. cashflow

Before you decide to lease or buy a building for a business, consider how much money the business brings in compared to your projected monthly payments. You’ll want to avoid overstretching your budget or else you’ll risk facing negative consequences due to default payments. You need to follow through with your monthly payments without crippling your business operations, so the option you go for should reflect the status of your finances. Leasing can sometimes be cheaper than ownership, so although you’re not building equity with a lease, you’re keeping costs as low as possible.

Building maintenance

Landlords and property managers will have specific terms for their leasing and buying clients regarding maintenance. The monthly payment for maintenance depends on the lease agreement you sign before moving in. Since a buyer is a building owner, buying clients have no option but to pay for regular maintenance costs out of pocket. Before you buy a building, consider whether you can pay the monthly bank payment plus maintenance fees. Otherwise, consider a lease.

Equipment usage

A tenant can often use fixtures and appliances in a commercial building but can’t take the equipment with them when they finish the term of the lease. Even when a landlord installs equipment to enable the client to do business smoothly, the equipment remains the property of the building owners. If you foresee your business moving in the short term, consider buying necessary equipment or purchasing the building outright.

Mobility

Whether your business grows or shrinks, it is important to ensure that the agreement you have meets the future needs of your business. Does your current space allow your business to expand and grow in the future? And in case all does not go well, are you at liberty to degrade without facing penalties? A lease will give you more flexibility if your business is in a period of rapid growth.

Long-term savings

Compare the savings you are going to make leasing versus buying. Ask your commercial real estate agent to show you multiple properties for sale or lease. Try to figure out the average price for both options and use that information to make an informed decision. Depending on the option you go for, you could save on the initial down payment, recurrent monthly rent payments, lease payments, tax deductions, and liability insurance.

The pros and cons of buying commercial property

Check out the advantages and disadvantages of buying a building:

It is an extra source of income

You can start earning rental income immediately when you become a commercial building owner. If you are not using all the space available, you can rent it out to other business owners and make extra income from the monthly rent payments.

You have more control of the building

As a commercial building owner, you have more control over what happens inside. You set the rules and can make key decisions about how you use the space. A landlord can’t restrict you from running your business how you want because you have the final say, as long as it is compliant with the state laws.

The premise’s value keeps going up

The good news is that, for the most part, property values appreciate. The longer you remain a landowner, the more money you make. If you decide to lease part of your property to other businesses, you can revise your lease terms and increase rents according to the lease agreement you have with the tenants. You can also decide to sell the building later and earn a profit to buy a new one at a better location.

The equipment in the building is permanently yours

All the fixtures you install in the building for your tenants or business will be permanently yours. They could add value to the building and even bring you more money.

Disadvantages of buying instead of leasing:

You must pay the down payment

If you are buying an office or commercial building, you need first to make a down payment. Just like auto loans, these down payments usually range from 15%-30% of the building’s entire purchase price, especially if you want a loan to finance it. This money can be a lot for a small or growing business, making it almost impossible to own if your margins are thin.

You could lose your capital trying to own the building

You may be forced to use business capital to make a down payment for the building. Most business owners will take out a loan to finance the purchase. However, you may stretch yourself too much to meet these debt obligations, and this can impact your available credit when you go to purchase future items.

Other costs

Buying a building, just like buying a car, adds to your monthly costs. Since you are the new building owner, you must meet all other obligations such as liability insurance and property insurance. You must incur all charges to protect your tenants from accidents, damage, and natural disasters. To lower monthly payments for the building’s maintenance, you may have to pass on some monthly costs to other tenants. Even though the property value keeps rising, you will need to regularly maintain the building after every few years to maintain its curb appeal.

The pros and cons of leasing

Check out the advantages of leasing:

Fixed monthly payments make it easy to plan your financial future

You will receive the payment terms before moving in when you sign a lease document. Your monthly rent payment remains fixed during the lease term so that you can plan for your business expenditure early on.

More liquidity

Your business does not have to make a huge down payment when leasing. As a tenant, you only need to pay the agreed-upon rent and a refundable security deposit, then move in. The low monthly payments leave you with disposable income for business operations.

It is easy to qualify for a lease

Most leases don’t have as stringent requirements when compared to buying. As long as you comply with the state laws and meet the lease terms, you are good to go.

Disadvantages of leasing

Lease payments do not qualify you as an owner

You still won’t qualify as an owner after many years of paying the monthly rent and renewing the lease agreement. Even if you pay as much money as the price of the building, you will move out one day and leave it behind along with your entire investment.

You have no control over tenancy agreement restrictions

Tenancy agreements are drafted by the landlord or property managers. These agreements often put restrictions on various business operations and space usage. Tenancy agreements can restrict you from multiple activities and alterations. This lack of freedom could severely impact your business.

Higher monthly payments

In the long run, rent payments are costly. You will find that in 10 or 20 years’ time, you have paid enough rent to own that building – but it still belongs to another person. In addition, at the end of the lease term, you will pay the wear and tear charges from your security rent deposit. Also, early termination is very costly and can eat into your profits.

Looking for business properties in West Virginia? Call us now for a free consultation

It’s not easy to decide whether to buy or lease a commercial property in West Virginia. You need financial planning advice to make the right decision for your business. Depending on the stage of growth you are in and the amount of disposable income you have, the real estate experts at The PM Company can help you find the ideal property for you. We have properties available across West Virginia and can grow with you whether your goal is to lease or buy. Call 1-304-485-8000 today for a free consultation.

Don’t Get Surprised by These Common Expenses When Leasing a Retail Space

When beginning your search for the right retail space, rent is not the only cost to consider. While it is a primary driver in your decision-making, understanding ancillary fees, build-out costs, and furnishing expenses can alter your budget and timeline when moving into a retail space. Factoring these additional expenses into your budget as early as possible will help you understand the full costs of operating in a new space. This will make your commercial real estate journey easy and stress-free.

Build out costs

A retail space will rarely meet every single one of your needs without some customization. Just as your business is unique and the opportunity it presents is one of a kind, many retail spaces are also unique and not one-size-fits-all.

Some spaces will offer a clean white space with an HVAC system but little to no furnishings. Other retail spaces will come with previously installed items. Knowing what your business needs to thrive will allow you to narrow down potential locations and find the right space for you. Consider what amenities are necessary for the interior build-out and what amenities you need when the business is up and running. 

Making a list of “must-haves” will give you a better understanding of what lease rate you can afford. Any extra items will need to be paid for on top of the lease itself. Some common build-out costs include shared walls, printers, shelving, and storage spaces. Your lease agent will also want to know your expected build-out projects since they’re considering the timeframe for occupancy. For many businesses, managing the build-out while also paying rent can be perilous. However, many retail leasing outfits specialize in mitigating tenant improvement costs and lease payments. Ask questions during the leasing process and work with a lessor to explain your needs. 

Utility costs

Just as you do for your own home, you have to pay the electric, water, gas, etc. in a leased retail space. When creating your lease budget, you should include the estimated monthly utility service cost. In a multi-tenant leased space, it’s common for leases to share common utility costs (e.g. those related to parking lot lighting, landscape management, etc). These expenses are handled in various ways, the 2 most common being Triple Net Expenses (NNN) and Modified Gross. 

Ultimately, you as a business owner should know what type of utility consumption your business needs in order to support operations. Your unique business needs should factor heavily into the location you chose. Can the location support your business’s utility demands? Whether you are running a nail salon or a Bitcoin mining operation, you will want to understand your anticipated water, sewer, electric, gas utility consumption in order to determine which space is right for your business. 

Triple Net lease fees, CAM fees, and Tenant improvement costs

 Not every retail lease is a Triple Net or NNN lease, but it is the most common lease in the market. In this lease, the property owner passes on the taxes, insurance, and maintenance fees to the tenant. This is important to understand as a tenant because it clarifies what you are responsible for and what the landlord is offering. 

These costs are typically passed on to the tenant because the rates themselves vary by the type of business present in the space. From property taxes, liability insurance, to common area maintenance (CAM) fees, these expenses are divided up based on the renter’s space allocation, usage rates, and other negotiated terms. Businesses who are considering leasing space in an office park or business center need to factor these types of costs into their price estimation for leased space. 

Unlike a stand-alone warehouse, a single home zoned for business, or another mixed-use facility, the lease rate in a business park or office building has the expectation that tenants will pay a prorated portion of the combined costs for upkeep and maintenance. As a business, you should consider what your business demands and negotiate terms that work for both parties. An open dialog with a leasing agent will help get you and your business into a building that meets your operational and financial needs. 

Furnishings, Fixtures, and Technology Needs 

Whether you are a high-end boutique, a new restaurant startup, or a pet toy company with a hundred or more employees, the interior needs of your retail space may matter as much as the facade when it comes to the success of your business. You should know upon entering a space what you can afford to purchase when it comes to computers, desks, lobby amenities, displays, kitchen equipment, etc. Because these items are necessary for you to open your business, it’s important to budget for these items from the outset. 

Factoring in purchase costs,  build-out costs, and base rent will be important in setting a move-in and opening day timeline. You will want your business to be in good form when you open your doors to the public, so working out the details on interior pieces and technology during the build-out process will save you valuable time and energy as you prepare to open the doors. 

Working with the right team to help you navigate the market

If you read this article and feel stressed or overwhelmed, know that you’re not on your own. All of these costs and considerations are part of any commercial lease process. Most businesses wrestle with these same questions at the outset, and leasing professionals are well accustomed to business owners who are considering their first move out of the garage into a brick and mortar space. 

The trusted team at The PM Company will help you crystallize your vision, find a space that fits your business, and leverage your unique value proposition to the market looking for your services. Engaging with a real estate professional early in your search will deliver the most value and return on your investment.

Commercial Buildings for Rent in Parkersburg West Virginia  

Whether you are looking for a storefront in downtown Parkersburg just a few steps from the historic Juliana Street or an industrial space that’s a short drive from the US Highway 50 and Interstate 77 interchange, Parkersburg commercial lease options are plentiful. Being one of the largest cities in West Virginia and home to several industries, Parkersburg has a selection of spaces that would make a great home for your business. 

Class B and C Office Space

Like in much of the U.S, office space availability in Parkersburg hit unexpected highs as a result of the COVID-19 lockdowns. Businesses who retooled during the pandemic began allowing employees to work remotely and found that renting a large office was unnecessary. What has emerged in the wake of the pandemic is a commercial and retailer renter’s market with many new class A,B, and C spaces becoming available for the first time in decades.

In Parkersburg, a number of class B office spaces have shown up for rent recently. Some are located in the downtown core along Market Street, 7th street and 29th street while other office opportunities have popped up on Murdoch Avenue, and Garfield Avenue along key transit thoroughfares. The downtown properties all come within close distance of the municipal parking garage, and have walkability and bikeability scores that are significantly higher than other areas within the region. Additionally, the downtown office spaces are within walking distance of great restaurants like Cham’s Lebanese Cuisine and the Blennerhassett Restaurant the Lounge as well as several bars and breweries like The Parkersburg Brewing Company and The Cocktail Bar. Additionally, hotels such as the Blennerhassett Hotel and the TownePlace Suites by Marriott Parkersburg are also within walking distance, allowing clients the ease of visiting without significant extra travel burdens. 

While some may like the tight quarters of downtown office space, many businesses prefer more convenience for their patrons and employees, with office spaces that have ample parking and easier access. The PM Company has well-maintained office buildings located in the heart of Vienna, WV, right by the Grand Central Mall, Wal-Mart, and a variety of other big box stores. These newer buildings provide the ideal atmosphere for professional service businesses and our property management team keeps the buildings in excellent working order. 

Retail, Neighborhood Business, and Downtown Storefronts

Just as the office space absorption rate changed drastically over the last two years, so too did the retail lease market. As businesses altered their models and took advantage of e-commerce, local retail spaces became available. In Parkersburg several retail spaces came to market, some in a connected strip mall, others in a multi-story downtown space, and a few in stand-alone buildings with attached parking. This is great news for business owners looking to rent commercial buildings in Parkersburg, West Virginia. 

While not as common as spaces in shopping centers or other dedicated retail complexes, stand alone homes now converted into retail spaces within neighborhoods can still be found in Parkersburg. The coveted neighborhood business designation is one of a bygone era, usually given to corner stores and neighborhood markets. However, many art studios, office supply stores, hardware or electronics repair shops, nail salons, hair styling studios, bookstores, bakeries, and sidewalk cafes and bistros operate out of uniquely-zoned residential homes. In Parkersburg you can still find some of these neighborhood business locations for rent, giving you the ability to create a unique space that can support both business and residential demands. 

Industrial Spaces, Flex Space, and Medical Spaces

As one would expect, the market for industrial space and flex space in Parkersburg mirrors national trends, having incredibly high absorption rates and quick turnarounds upon hitting the market. Because of on-shoring efforts and major distributors opting to maintain production levels instead of stopping the assembly line, industrial spaces have been getting snapped up for assemblage and storage operations. The market in Parkersburg for industrial space does skew older, but in that older stock, greater value can be found. Amenities can be elusive, but the value of the spaces available in Parkersburg surpasses that of other regional markets. For businesses looking to grow into a larger footprint and find more direct consumer opportunities, available properties along Depot Street, 7th Street, and Route 68 can provide greater visibility and room to grow. 

By way of flex space like a combined space with an office and industrial component, Parkersburg has a number of options that can suit your needs. Applicable zoning notwithstanding, several spaces along Depot Street near the rail terminal,  in South Parkersburg along US 50 and Camden Avenue, and along Dudley Avenue at the crossroads of Lakeview and 36th Street. Typically home to industrial supply stores, automotive maintenance centers, and the occasional manufacturing operation, flex spaces are always in high demand and provide the highest grade of flexibility in the market. For those in Parkersburg the options are wide ranging in scale and age, and are interspersed throughout the city. 

Lastly, consolidation of medical services by area providers has provided interesting opportunities for private practitioners or specialists to find newly renovated or recently constructed medical spaces, complete with waiting areas, ADA accessible entrances, and applicable signage pieces that will help your business stand out to new patients. Growth in the medical services sector has been consistent in Parkersburg, and should your practice be in the market for a new highly visible space, numerous opportunities exist within the city. 

For those who are seeking a space to rent, or want to engage a professional about what opportunities exist in Parkersburg, a conversation with a member of the trusted team at the PMC Company may be in order. Take a moment to view our commercial properties for sale or lease in Parkersburg then contact our team for details.

The Basics of a Commercial Real Estate Lease – What You Need to Know

Every business owner who leases commercial real estate should have a basic understanding of what goes into a typical lease. This allows business owners to avoid confusion and unexpected surprises when signing a commercial lease. Informed business owners spend less time clarifying simple questions and can quickly approach a potential landlord to close deals. In fact, executives who understand the basics of commercial real estate leases are more likely to:

• Identify leases with favorable terms
• Understand their business’ needs and jump on opportunities as they arrive
• Spot red flags and avoid leases that may become a burden

The Mid-Ohio Valley commercial real estate market provides unique challenges. As it is a stable, but slow-growth area, new leases are not often available. The area is full of many well-established businesses that have found their ideal location and see no need to move. This means that new or growing businesses must be ready to act quickly when a property does open up since these opportunities are not always available. However, in that haste, it’s important that one slow down enough to fully understand the lease terms for the space. The PM Company encourages everyone looking at commercial real estate to brush up on the basics of a commercial lease. This allows interested parties to act decisively and quickly, while protecting current and future interests. We’ve provided a quick overview of the basics of a commercial real estate lease. 

What Items Are Usually on A Basic Commercial Real Estate Lease?

Most lease contracts will include the following elements.

Notice addresses

Both parties will provide addresses for receiving official communication. If the landlord needs to notify you of an issue regarding the commercial property, this is where they will send the information.

Property description

The property owner will provide a written, legal description of the commercial real estate property. This description should be thorough and accurate to prevent misrepresentations.

Security deposit

The lease contract should also lay out the details of your security deposit. Specific points might include the total value of the deposit, what the deposit will secure, when it becomes refundable, and whether or not it can apply to your rent.

Use of premises

Acceptable use of the property will depend on zoning rules and property management stipulations. For example, heavy industrial work cannot happen in a building zoned for commercial retail. The property manager might also limit loud businesses (like a nightclub or doggy daycare) to protect the other tenants from unwanted noise.

Defaults by either party

This clause defines what constitutes default (i.e., late rent payment by the tenant, failure to maintain the outside structures by the landlord) and the available remedies.

Building access

Not all leases include 24/7 access to the property. Businesses that hold irregular hours should pay attention to this clause and be sure the agreement works in their favor.

End of lease holdover

The typical fee for staying in the space after the lease term ends. These fees can range anywhere from 100 percent to 200 percent of current rent. 

Insurance, indemnification, and liability

This section of the commercial real estate lease will lay out what types and amounts of insurance each party must hold. It will also cover which party is liable for a host of possible damages.

What Are Some Basic Fee Structures for a Commercial Property Lease?

Businesses in the Mid-Ohio Valley will likely see three different types of commercial property leases. Each provides a different way of structuring fees and allocating them between the property owner and the leasing party. 

Triple Net (NNN)

A triple net lease, or a net lease, is one of the most common lease structures used for commercial properties. In this arrangement, the tenant pays the base rent along with the three additional “nets,” which include:

•     Property taxes
•     Building insurance
•     Common area maintenance (CAM)

While it may seem as though the tenant absorbs the brunt of the costs, the landlord is still responsible for maintaining the structural components (structural walls, foundation, and roof) of the building.

To calculate rent for a NNN lease, take the estimated annual expenses and add that number to the price per square foot multiplied by the rentable square footage of the space.

Full-Service Gross (FSG)

A full-service gross commercial real estate lease releases the tenant from most expenses related to the property. The tenant will pay a base rent that changes only in relation to the agreed-upon rent adjustment clause. To calculate the rent for an FSG lease, you simply multiply the price per square foot by the square footage of the space.

Modified Gross (MG)

A modified gross lease allows the tenant and property owner to agree on a detailed breakdown of rent versus operating expenses. A tenant may be asked to pay for rent plus just the electrical bill or just the water.

What Additions are Commonly Made to Basic Commercial Property Leases?

Sublease Clause

Businesses in the Mid-Ohio Valley and across the country are facing huge disruptions related to real estate. Many employees are working remotely while some businesses are seeing large stockpiles of inventory that can’t be used due to supply chain issues. Business owners may find that they are leasing more space than they need. 

This is where a sublet comes into play. A sublet will allow a tenant to rent extra space to a third party. Anyone leasing commercial property should find out what is and what isn’t allowed when it comes to a sublease.

Exclusivity clause

Business owners may ask for an exclusivity clause in their commercial property lease. These are popular in retail leases since it keeps similar businesses from setting up shop in the same location. For example, a smoothie bar might want to ensure another smoothie bar doesn’t move into the same strip mall.

Rent Escalation

When leasing commercial real estate, a business’ rent can increase on a yearly basis or during any renewal options – this is what the rent escalation clause covers.

The rent escalation clause explains how much of an increase in rent a tenant will be subject to. Business owners should treat rent escalation like a homeowner would treat an adjustable mortgage. Calculate rent escalation through the long-term as even small percentage increases can compound lifetime lease costs. 

Even the most basic commercial lease requires careful reading and a sophisticated understanding of commercial contract law. While this provides a basic foundation for your understanding, we recommend you always discuss potential commercial real estate leases with a qualified lawyer before making decisions.

For over 30 years, the PM Company has been involved in commercial real estate throughout the Mid-Ohio Valley. We help business owners find properties that benefit their business and provide leases with equitable terms for both parties. We currently hold a million square feet in commercial and retail properties throughout the Mid-Ohio Valley.

View our listing page for up-to-date commercial property listings including “For Sale” and “For Lease.”

Call us at any point in the leasing process and we will be happy to help you.

Contact us today for more information.