Commercial leases are very different from residential leases. When you rent an apartment or house, the landlord presents a lease to you, you read it over and if you agree with the terms you sign it and move in to your new home. If you don’t agree with a residential lease, the landlord is not likely to negotiate the terms with you. Residential landlords need to make their leases uniform so each tenant adheres to the same rules on their property. Commercial landlords, though, expect business owners to negotiate the terms of their lease.
Commercial property owners prefer long-term leases because they offer security. However, long-term leases, while they are less expensive, are often not in the best interest of the tenant. If your business is new or you anticipate growth in the next couple of years that will make the space too small to meet your needs, a short-term lease may be in your best interest.
Another issue that a Real Estate Lawyer may be able to help you with is who will handle maintenance and repairs. Many commercial leases require the tenant to make repairs while others stipulate the repairs the tenant and landlord are each responsible for making. It is important to understand your requirements under this section of a commercial lease because air conditioning and heating systems can be quite expensive to repair if they break down.
The lease your landlord proposes may also include fees for common area maintenance and utilities if the unit you rent is not individually metered. Be sure you understand how these fees are calculated and negotiate for lower fees if necessary. Your lawyer may advise you to accept some fees because they are standard but negotiate fees that are out of the ordinary.
The important thing to remember is that a lease is an agreement between you and the landlord. Nearly everything is negotiable but some concessions may cost more than others. Talk to a Real Estate Lawyer such as Gnuse & Green Law before you enter into any contracts for commercial property to ensure your interests are protected in the transaction.
