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Lease negotiation is important for your business

| Jan 1, 2021 | Commercial Real Estate |

It’s not always easy to find a space that will work as a storefront for your California business. There are budget issues to consider, and the commercial real estate market can be competitive. When you finally find the right place that will work well for your business, you may feel the urge to move forward as quickly as possible, but that is not always a prudent course of action.

Before you sign a commercial lease, you will want to take steps to ensure that your interests are secure. One way you can do this is by negotiating fair and reasonable terms in your lease agreement. While your landlord may have a standard contract ready for you to sign, you will find it beneficial to make sure that it includes terms that are fair and ensure the long-term success of your company.

What’s in your lease?

Every business is different, but it is beneficial to include certain details in every commercial lease, regardless of the nature of your business and what you need out of a commercial space. These terms include: 

  • Rent amount – Your lease should be very clear regarding the amount of rent you will have to pay as well as how potential rent increases would work. It should also be clear what your rent includes, such as utilities and other fees.
  • Length of lease – You should know how long your lease is supposed to last and what will happen if you break the lease early. You may also want to negotiate terms that allow for the potential for subleasing, if that is a possibility for you.
  • Remodeling expenses – If you need to change the space to make it suitable for your needs, it is beneficial to include that in your lease terms as well. It should be clear which party is financially responsible for changes to the space and necessary updates to the space.

The terms of your commercial lease matter. They will affect your business for years to come, and it’s necessary to make sure that you are not exposing your company to the potential for financial loss and legal risk.

Before you sign on the dotted line

Before you sign a commercial lease, you may find it beneficial to speak with an experienced real estate attorney regarding how you can minimize your risk and protect your future interests. Whether it’s contract review, negotiation or drafting, you do not have to navigate commercial lease concerns on your own.