What Is A Commercial Lease?
Right before we go over what a commercial lease is, we must define what a lease is. And, with that in mind, a lease is a contract between two parties, in which one party allows the other to use their property for a set period. Even though the other party is able to use the property, the other party, who grants the lease, still owns the property.
Given the definitions above, a commercial lease is almost the exact same time. But, there’s one major difference: a commercial lease is a contract that outlines the ways in which a business can use a piece of commercial property.
Just as an example, if a restaurant owner wants to set up a new location, they will need to develop a commercial lease with the owner of a property that can be used for this purpose. And, in developing this commercial lease, they will need to clarify their usage of the property and come to an arrangement regarding these uses.
Right before a business owner, and the owner of a property, can develop a commercial lease, there are certain tips that a business owner should remember and rely on.
The 5 Best Tips For Commercial Lease Negotiation
Tip 01: Consider The Duration
Every commercial lease must clarify a specific amount of time in which the business will occupy the property. Right before you finalize your commercial lease, make sure to consider the duration of your lease.
A commercial lease that is too long may impinge on your flexibility and freedom. But, a commercial lease that is too short may not allow your business to develop the roots it needs to succeed.
To ensure that the duration of your commercial lease is right for the needs of your business, make sure to consider both your short-term business goals and, in turn, your long-term business goals. By doing so, you can determine the duration that is right for your business, with regards to your commercial lease.
Tip 02: Make Sure You Understand The Commercial Lease
Right before you can finalize a commercial lease, there are a variety of documents you must sign. Every single one of these documents will contain a variety of terms and conditions that may, or may not, be very clear.
No matter what, make sure that you understand the terms and conditions outlined within the commercial lease you are about to sign. By doing so, you can prevent unforeseen problems from arising, while also ensuring that this lease satisfies the needs and goals of your business.
To make sure that you understand what, specifically, your commercial lease entails, it is best to speak with a commercial real estate lawyer prior to signing.
Tip 03: Carefully Review The Termination Clauses
A termination clause is a provision, within an agreement, that clarifies the circumstances in which the agreement, in question, can be terminated.
Many commercial leases contain termination clauses and it is of the utmost importance that you review them, before you sign that commercial lease.
Just as an example, a commercial lease may state that, if the property is sold, then you will be forced to leave the property, without any sort of compensation. Or, it may make breaking the lease, if you want to expand your business, a very expensive task.
With this information in mind, you can then negotiate more favorable termination clauses. Or, if you are unable to do so, you can find another commercial property.
Tip 04: Ask For Favorable Clauses
Every single facet of your commercial lease should, on some level, be aligned with the goals of your business. To ensure that this is the case, you should ask for favorable clauses that support your business goals.
Some of the most notable clauses you can negotiate for are as follows:
- Your ability to sublease the property you are renting.
- Renovations of the property, before you and your business move in.
- A new set of parking spaces for you and your employees.
Every single one of the above is a favorable clause that may align with your business goals. You can attempt to negotiate for them and, in doing so, your new commercial property may be more aligned with those business goals.
Speak With A North Carolina Commercial Real Estate Lawyer
Every commercial lease requires effective negotiations. Speak with a North Carolina commercial real estate lawyer today and we will assist you in obtaining a commercial lease that satisfies your business goals.
Max Akin Writing 