You may think that the biggest challenge you will face when leasing commercial real estate will be finding an appropriate space for your business. However, you will discover that the biggest challenge is understanding and negotiating your lease. Unfortunately, once you’ve signed a lease, it’s generally too late to make any changes.
Protect yourself! Begin by checking the fundamentals, such as commencement and expiration dates, base rent calculations and CAM obligations.
Next, examine other issues including:
* Do you have the right to renew?
* Is the space provided “as is”?
* What construction will be allowed?
* Can you terminate the lease early, and are you able to sublease the space, if desired?
* What is your responsibility for common area maintenance (CAM) costs and what do they entail?
* Will you be charged any administrative fees, and what will those include?
*Are you responsible for structural expenses?
* Who pays for insurance, insurance deductibles, and property taxes?
* If you sell your business will the new owner be able to take over your lease?
* Will you be personally responsible for the lease?
* Are there possibilities for expansion or contraction in the future?
Leases, like most legally binding contracts, are highly complex. Remember, every item in a lease is negotiable. Therefore, you should consult with an experienced professional before entering into a commercial lease. Professionals often find ways to reduce costs and discover opportunities within the lease that can save you time, money, and risk.
LeaseWatch was founded by attorneys with decades of experience in both real estate and litigation, and was created to eliminate the stress of being a commercial tenant. It is comprised of professionals who provide sophisticated, customized and economical lease administration and support services.
If you are a tenant who would like more information about what to look for in your commercial lease agreement, please contact LeaseWatch today at 561-998-2800 or visit us at www.leasewatch.org.