Commercial leases are vastly different from residential leases. If it’s time for your company to establish or renew a commercial lease, there are some very specific things that you need to consider. Taking the time to think about these can help to protect your company from a lease that slowly chips away at the bottom line.
Understand the charges
Commercial leases have several different pay structures that they might utilize. This means that you could be responsible for having to pay more than just the rent. Some of the charges your business might have to pay includes property taxes, utilities, common area maintenance and portions of repair costs.
The charge structure can have a huge impact on your company, especially if you’re responsible for some of the repairs and maintenance costs. It might not seem like you’d be responsible for much, but consider how much you’d have to pay if the HVAC unit goes out for the building and needs to be replaced. Depending on the cost and how many other tenants are in the building, this could be a significant expense.
Check other terms
Other terms, such as parking and hours that the building will be open, might also have an impact on your company. Be sure to review these other terms so you can determine whether the space is suitable for your business.
Even if you’re only renewing a commercial lease, you need to completely review the terms to determine what’s changed. Seemingly small changes can have a big impact on how the lease impacts your company.
Taking the time to have your company’s attorney review the lease agreement is beneficial since they can pick up on potential issues that could cause problems down the road. They can also help you negotiate elements of the lease so that your rights and interests are protected.
Notice: We are providing this as general information only, and it should not be considered legal advice, which depends on the facts of each specific situation. Receipt of this content does not establish an attorney-client relationship.