Commercial lease negotiations can be difficult for even a veteran business owner, let alone someone who is just starting out. Even if the commercial real estate market is favorable for the buyer, it is a complex process and does require a significant amount of research. You can only hurt yourself and your business if you walk into a negotiation situation unprepared. There are a few key parts of a commercial lease that are important to understand.
First and foremost, the rent amount and the length of your lease are the two main topics to address. It is important to remember to not over-commit yourself in either the length of your lease or the amount that you pay. You also want to inquire about any rent increases that may occur during the term of the lease as an unexpected increase can quickly blow your budget out of the water.“
Secondly, it is important to make sure that you establish who will be responsible items such as for utilities and maintenance. Commercial leases generally vary on this subject and some may even contain limits to the dollar values that you may be responsible for. If you feel unsure of how to broach this topic, you can always consult an attorney as to how to handle this issue. Remember that there is no such thing as a standard commercial lease and many if not most of the items on that lease are negotiable.
Also, it may seem like common sense, but make sure that you actually read the lease in its entirety before signing. The more knowledge you have, the less likely it is that there will be any surprises over the life of your lease, including what happens in the rare case that you default on your lease.
If you are at all uncomfortable with this process, it is recommended that you hire a real estate broker. The commercial real estate company will definitely have someone protecting their interests and you should do the same.
If you have questions regarding your commercial lease, you can contact Menlo Group Commercial Real Estate here.