Many businesses are successful because of the right location and space. Business owners have to consider many things when finding a building to operate work, such as parking, neighborhood, signage and community. This isn’t often easy unless a business owner signs a commercial lease.
How a business operates often is determined by the commercial lease they sign. If the terms of a commercial lease are not favorable for a business, then it could perform poorly. Many commercial leases are adjustable to fit both the needs of the landlord and the tenant.
Here are a few factors in commercial leases that businesses should consider:
Length of a commercial lease
Business owners should discuss with landlords whether the term of a commercial lease lasts for several years or is expected to end in a year, and what renewal options are available. If a business owner finds the perfect place, they may need to negotiate for a longer term.
Commercial leases often have varying maintenance responsibilities. In some cases, the landlord is responsible for providing most services. A landlord may use a triple net lease to make the tenant pay the cost of maintenance in addition to rent and utilities. The landlord could also require the tenant take full responsibility for the upkeep of a property. The renter may be liable for anything, including maintenance of the parking lot and cooling.
Most business owners have to modify the space they use to accommodate production or products. A commercial lease may need to include just how much a tenant can alter the space to accommodate their needs.
When negotiating a business lease, other terms may be worth requesting, such as force majeure or early termination clauses. For business owners who have found the perfect space, it is wise to investigate all the legal options. Call one of our experienced attorneys to learn how we can help with your commercial lease negotiations.