- By Editor
- 16th Aug, 2019
The process of identifying, negotiating and signing a commercial lease is an important and a long process. A rental agreement is signed when you lease a commercial real estate that allows a businessman to rent commercial space from a landlord which is required to set up his business. There are various types of commercial lease - full-service leases, net leases, and modified gross leases. A full-service lease is where the tenant pays a base rent amount and the landlord then pays for all the operating expenses such as maintenance charges, utilities, property taxes and insurance amount. Net lease refers to an agreement where the tenant pays a portion of the taxes, insurance fees and maintenance cost in addition to the rent amount. A modified gross lease is for offices where there is more than one tenant involved in the agreement. Leasing commercial property can be a cost-effective deal only if it is done properly, ensuring both the tenant and the landlord benefits from the deal. You can hire a commercial broker to assist you in the leasing process as they will be able to give you proper leasing tip in the whole process of leasing the proper commercial property for you according to your requirements.
Review the contract properly:
One ought to consistently have legal documents looked into by a lawyer. With respect to a commercial rental contract, the audit ought to be performed by a legal counselor that has some expertise in commercial real estate law and has taken care of lease reviews as often as possible. This is, after all, a legal binding agreement, you should have a proper understanding of it before you sign the agreement.
Understand your business needs:
List down your business needs and what are your company’s future space requirements, and analyze what is your budget and preferred location. Do a little research work before searching out for the commercial property and negotiating for a lease. If you are not sure about a few things, go for a short term lease. You might have to pay more per square feet area for a shorter period lease but at least you can walk away easily if you need to.
Know the current market:
Having a working knowledge of what different tenants in the zone are paying and what sorts of agreements really are the standard will have you outfitted and prepared to demonstrate that your expectations are sensible. On the off chance that you don’t pursue this tip, ensure you do a lot of research before you negotiate.
Review termination conditions:
Check properly the termination conditions mentioned in the agreement by the landlord under which either of the parties involved can terminate the lease. For example, you might to kicked out for not paying the rent on time. What if the building goes into redevelopment or the building is sold. Some lease may require you to pay the complete amount or pay just the part of the total payment. You can always negotiate for better terms.