How to Build the Best Commercial Lease – Good Negotiating Tips
After conducting an extensive search you have now found the perfect commercial office space for your company. You have already viewed the property and made a clear assessment that all of your business needs are available at the location. Once you have informed the commercial office property you are interested in leasing their space, you will typically be presented with a standard lease package. Accepting the lease for review is your next step before signing any papers.
Since your needs are specific to your company, you may need to revise the terms of the lease during lease negotiations to fit your needs.
Six good tips:
- Description of office space-an accurate description should be clearly listed in the lease including the lease period, expiration date and renewal options.
- Rents & security deposits – the lease should state exactly what the rent is, due date, any late fees and amount of security deposit (if required).
- Utilities & Parking – lease should clearly state which utilities tenant and landlord are responsible for. Maintenance and repairs charges should also be included. How much parking is available for the building and number of reserved spaces should also be defined in lease.
- Use of common space-review all references to common space and access to all common spaces unless there are specific restrictions contained in lease. Also, check for any clauses regarding upkeep or charges for common space.
- Signage & tenant improvements-verify rights to signage included in lease and if there is any defined allowance for tenant improvements.
- Terms of lease – what are the terms of lease in regards to vacating the premises early if necessary or if you have any rights regarding moving to a larger (or smaller) office should your business requirements change?
There will be many additional points included in the lease that you will need to review and possibly revise for your own needs. It is also a good idea to seek the advice of a real estate professional when reviewing your commercial lease before signing it.
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