A recent LawTrades user asked:What are some tips for negotiating the most favorable commercial lease for my business?
Great question. Here are some useful tips:
A fair price can usually be determined by looking at similar rental spaces in the area. This is also important when negotiating renewal options. Try to work out a limit on increases so it remains affordable for you to stay in that particular commercial real estate location.
Give yourself some time.
Sometimes this is uncontrollable. If you do have time though, be patient. Finding the right spot will often occur spontaneously.
Negotiate an exit strategy.
There are no guarantees that things will go smoothly in the future. It’s important to leave yourself with some safety by negotiating sublease / assignment / cancellation clauses.
Don’t limit your usage.
Many leases include a list of what the tenant can do in the space. It’s in your best interest to include language such as “for all legal uses” in your lease.
Hire an attorney to help you.
Commercial leases can be long and confusing. A skilled attorney can help you understand things, and point out red flags that could eventually hurt your company.
Have more questions? Feel free to visit LawTrades.