If you are expanding your business and are looking at potential new premises, this article will be very helpful to you. Leasing commercial real estate is something to be taken very seriously, as it is a big commitment, and with that in mind, here are some critical aspects to take into account before making such a commitment.
- Seek out the help of a professional – Legal jargon is very complex, as you probably know and we advise you to enlist the services of a top commercial lease attorney, a person who will ensure that you are protected and that you fully understand the agreement. The legal expert would sit down with you and go over the lease point by point, explaining in layman’s terms to be sure you understand.
- Types of commercial lease – There are numerous types of commercial lease; a full-service lease, where the tenant pays the base rent and the landlord pays all utilities, taxes, and all other costs related to the upkeep of the premises. A net lease is when the tenant pays a percentage of the maintenance costs; there are single, double, and triple net leases, each having its own set of conditions. Finally, there is the percentage lease, where the tenant pays a portion of management costs.
- Subleasing – This is when the tenant leases part of the premises to a third party; some landlords do not allow subleasing; check with a commercial property lawyer regarding subleasing. If subleasing is allowed, you should make sure you fully understand the terms and conditions of such a condition.
- Read the small print – We all know that the small print is actually small because the owner would rather not advertise this information. There could, for example, be a single clause in very small font that changes everything; we advise you to hire a reputable commercial property to scan the lease agreement prior to signing. Click here to learn about building materials and choosing the right ones for your project.
- Lease duration and options – Relocating a business involves huge costs and you need to be sure that the deal gives you the longevity that you need. If, for example, there is an option to extend the lease, this means you have choices when the time comes. You would be investing a significant amount over the years and it is important to have the option to renew.
- First offer – In the event the landlord ever decides to sell the property, you should get a first refusal offer, which gives you the option to buy before the property goes on the market. This is something to discuss with your commercial property lawyer and it could make a big difference to your company’s long-term future.
Sourcing the right venue for your business should not be something that is rushed, rather you should carry out an extensive search and compare all of the possible premises. Hire an experienced commercial lawyer to scan lease agreements and you should be adequately protected.
