New businesses often start at a kitchen table. After an entrepreneur begins to have success, they have to make a decision about whether to continue to run the business from home or lease a commercial space. Although working from home has some benefits, it also has significant drawbacks. Before renting an office or retail space, it’s important to learn everything there is to know about commercial leases. While a great location is important, the contents of the lease agreement can have a huge impact on the success of a new or expanding business.
The most important thing for any new business owner to know is that, unlike residential leases, commercial leases are negotiated agreements between the two parties. They are complex documents and usually have several addendums. Landlords expect their tenants to negotiate, so it’s essential to have a list of requests prior to the first meeting with the property manager. A broker or real estate lawyer may help an entrepreneur negotiate a lease that protects their interests.
Leasing Commercial office space can give a new business owner the opportunity to work without distractions. There could potentially be a lot of expenses that accompany this convenience. In addition to the monthly rental fee, a business might also be responsible for utilities, maintenance, and cleaning charges for the common areas of the building. Nearly everything on a commercial lease is negotiable. Business owners who need a more reasonable monthly payment might be able to negotiate by extending the term of their lease with increased rental costs each year.
Business owners should wait for the property manager to present a lease agreement rather than present their own initially. This allows the prospective tenant to go over each line of the contract and suggest changes. A real estate lawyer could be very useful at this stage of the process. It’s very important for an entrepreneur to understand and agree to every aspect of the documents prior to Leasing Commercial Space. By insisting on things like the right to renew the lease and the ability to sublet the space and exclusivity, tenants can get a lot of value from their commercial lease.