Negotiating a good lease agreement can be the difference between the future success or failure of your business. There are a few things you should do when negotiating a commercial lease in order to have the best outcome.
Speak To Other Professionals
Get as much helpful information as you can during the time of your lease negotiation. Speak to professionals that have had success with negotiations and who can help guide you to get what you want in the negotiation. Do as much research as you can and don’t leave any stone unturned. You might also want to talk to tax accountants, real estate brokers, architects and anyone else that can give you helpful information on the process. Commercial leases can be complex and difficult to understand so taking the time to have as much knowledge on it as possible it extremely important to your success.
Be Aware Of The Key Provisions
These are the provisions that are important to negotiate as the business owner.
- The Term: The term, or the length of time in which you have the lease, should vary depending on the type of business you conduct. But for most new businesses you should stick to the shorter side to make sure the location is going to be successful. Try to negotiate an agreement that allows you to easily renew your lease if the location and the business are doing well.
- The Protection: Negotiate protections for you if you become unable to make your rent payments. You may not consider these things now but you never know what your income might look like in the future so it’s smart to consider every possibility. Negotiate a longer grace period before the owner of the building can terminate your lease. Get a grace period for late payments.
- The Rent: Research some other rent prices in your area. Use this information when negotiating your rent price with the owner.
- The Other Fees and Expenses: Determine what fees and expenses they are going to pay and what you’ll be responsible for paying. Things such as utilities, insurance, management fees, taxes, and maintenance, are all something you can negotiate to have them cover. Also, make sure they are covering any broker’s commissions.
Talk to an experienced Real Estate Lawyer
Our lawyers are experienced in helping clients handle commercial lease negotiations and can help you get the outcomes you want.