Top Things to Consider In Commercial Lease Negotiations


While it may be a stretch to anyone’s budget, there’s no denying that hiring legal experts or business professionals during the negotiation process for a commercial lease is the best and most proven way of getting the most favorable terms. Don’t forget that choosing the right commercial lease isn’t the same and as simple to that of renting a residential property since you’re dealing with something that needs to provide help for your business to succeed.

However, you probably are esteemed enough to do the negotiating on your own, but it doesn’t mean we’re just going to let you do that without arming yourself with some tips on how to guarantee that the lease contract terms are in your favor.

First of all, be sure you evaluate the length of the lease based on what you agreed upon verbally and what’s written in the draft of the contract. There actually are several things you need to do at this juncture, including locating the ideal commercial rental space, filing the rental application, and applying for the lease. Once those are done with, you expect to receive the documents for your lease. A one or two-year contract is good enough for small-sized businesses, but it makes sense to have an option to renew thrown in.

The moment you’re done weighing over your length of the lease options like Commercial Leases for Franchises, it’s time to think about the price. While it does takes time and tons of effort to get the best rate, you will want to sweat it out if you want to negotiate for a fair price. Bear in mind that there’s no way for you to negotiate for a fair price if you don’t even have numbers to compare. Likewise, do not ever forget to talk about renewal and if the owner will throw in a provision on rent increases. This is to ensure you won’t be in for surprise in the form of a rent increase as you move forward.

Lastly, be wary of the possible hidden costs that will catch you offguard. You should know that commercial leases can either be a gross lease or a net lease. The former includes all the costs in the entire lease. The latter on the other hand suggests that aside from it, there are additional costs to be charged to you aside from the rent. Although you find it unfair and unfavorable to you, the fact is many commercial leases practice this net lease. For the most part, the costs that are not included in the negotiations are those related to the maintenance of the commercial property or space. Though it really becomes the responsibility of the tenant to cover maintenance costs, it doesn’t mean it needs to be hidden from you during the negotiation process.

Once you’re settled with all those issues above, make it a point to read the commercial lease at least a couple of times before you agree and sign it. Click here for Legal Advise for Businesses and Commercial Enterprises!


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