Having the right space can make all the difference for a business. From manufacturing facilities with enough space for large equipment to retail storefront space in a community that represents the intended customer base of a company, the right property at the right location will make a major difference for a new or growing company.
Many prospective commercial tenants let their enthusiasm about a property determine their actions, which could lead to less-than-favorable terms in a commercial lease. The two factors below are potentially open to negotiation in some cases and will have a major impact on how much risk the company assumes when signing the lease.
1. The maintenance arrangements
In some cases, commercial landlords pass all property maintenance responsibilities to the tenant. Everything from HVAC failure to parking lot maintenance could become the responsibility of the tenant.
Other times, the landlord will provide some services and will pass those costs on to tenants. They may have someone sign a triple net lease to take responsibility for maintenance costs, taxes and insurance. They may impose CAM (common area maintenance) fees if the unit is one of several at a facility. Different arrangements will lead to different amounts of responsibility for the property and different monthly costs.
2. The duration of the lease
It is standard for commercial leases to last for multiple years in many cases, although some commercial landlords are more flexible on the duration of the lease than others. Startups or fast-growing organizations may need a little more leniency from their landlords to help them control costs.
There are other terms, such as clauses that allow someone to cancel a lease, that can also be worth requesting when negotiating a commercial lease. Understanding the variables in a commercial real estate transaction will be crucial for the protection of the prospective tenant looking to acquire property, so seek experienced legal guidance today.