Are you in the process of searching for commercial space? Maybe you’re doing so because you’re starting a business. Perhaps you’re doing so because your current company needs room to expand.
There are many steps you can take to negotiate a favorable commercial lease. Here are a few things to keep in mind:
— Length of the lease. As a small business owner, a shorter lease is typically better. For this reason, think about a one- or two-year lease. When you negotiate this, you’re not tied into the current location for an extended period of time.
— The cost. It goes without saying that you want to get the right space at the right price. For this reason, you should research comparable rents in the area to get a better idea of what is available. From there, you’re able to negotiate from a position of power.
— Focus on hidden costs. As you review the lease, you may find that there are hidden costs. For example, you may be asked to keep up common areas or maintain the interior of the property. These hidden costs have a way of eating away at your profits over time. Fortunately, with the right approach, you can negotiate these out of the lease.
It’s never easy to negotiate a commercial lease, but there are steps you can take to put yourself in better position.
When you take the time to review a lease before signing, you can work out better terms. This has a way of saving you time and money in the future. A real estate attorney can be an asset during these negotiations.
Source: Intuit, “How to Negotiate a Better Commercial Lease,” accessed Dec. 28, 2016