The Cayman is already enlisted amongst the best places in the world for finances to grow. Off late, it is also becoming an ideal place for businesses of all sorts to thrive and flourish. Well, not apparently noticeable, but this fact is having a heavy positive impact on the Cayman Commercial Property market. The demand for leasable commercial property has increased specifically in the buzzy corners of the county. The Commercial properties in Grand Cayman are the ones that take up customers like hot cakes. If you identify yourself with the class of people who are wishful of starting their businesses from Cayman Islands, here are a few things you must keep in mind and stay alert to. Attaining Commercial Property on the basis of lease is way different from doing the same with residential properties.
- Commercial land leases entail far less buyers protection when you compare it with that received by residential tenants. As such anything that you sign on, would be strictly binding on you. Read your lease documents carefully before putting down your signatures. Check out whether you would like to agree with the terms and conditions specified, or if you would like to go for negotiations.
- If your business is in its infant stages, it is better you opt for taking a commercial property on rental basis rather than going for lease. The condition of lease is that you agree to pay the lease amount for a decided period of time. Here, we take an example of 10 years. If you take a land on lease for 10 years. And your business dwindles after 4 years, you would still have to pay the lease amount for 6 more years! So, beware
- Business land leases are generally, 'Full Repairing and Insurance'. If you decide to take up a Cayman Commercial property on lease, better inspect the land before you decide to take it. If the land already needs repair and working upon, it is way better to go for some other option or ask for the land to be repaired and then put on lease.
- Commercial lands are way more subject to market trends that are residential properties. As such, business friendly locations like Grand Cayman could be the deal stealer. Commercial properties in grand Cayman are expensive are the rates fluctuate on a fair basis. Taking up a commercial property in a place like Grand Cayman, needs a lot of strength financially, so that if things go wrong somehow in the future, you don't need to break your back under financial obligations.
- There is a term named break clause while you are taking a commercial land on lease. It entitles you to the right of terminating the lease if your business does not do very well. You can however, still carry on your business from the same place without having to stay bound withing the limits of the lease.
- The lease term is a prominent factor while deciding on how successful your lease would be. Normally, the terms and conditions for lease become a liability even if the payment amounts are less for long lease terms. The catch here, is to maturely bang down upon an equilibrium wherein you have your land for an ample amount of time, yet having to pay a decent lease installment.
