5 Tips for Negotiating a Commercial Lease
Negotiating Your Commercial Lease
When moving into the world of commercial real estate, you’re likely to deal with more complicated leases than you’ve ever experienced before. It’s easy to get caught up in the lingo and feel overwhelmed, leading you to potentially make a poorly educated decision. If you learn how to negotiate your commercial lease, you can come out knowing you’re getting the best deal for your needs. Here are five things to remember when you’re negotiating your lease.
1. Include a Lawyer
Negotiating a lease alone can be intimidating, so it’s important to have an experienced legal team on your side. Finding a South Florida luxury real estate attorney who is knowledgeable in the field and is familiar with the market is vital to getting the agreement you want.
2. Understand the Terminology
There are several different types of leases available to you, all with varying coverages. A gross rent lease will typically cover your rent itself as well as all incidentals, while net leases usually have you directly paying some incidentals. Percentage rent leases involve a base rent payment as well as a gross sales percentage. Be sure to ask what options are accessible to you.
3. Know Your Comps
Learning about comparable rents in your area will help you determine if you’re getting a good deal. Check in with commercial realtors to get a full picture of the market so that you can be prepared with figures when you’re negotiating.
4. Check Renewal and Termination Conditions
Be sure to ask what circumstances warrant termination so that you aren’t caught off-guard if you run into some trouble down the road. Also ask how long the lease will last and what your options are as far as renewing when the time comes.
- Evaluate Your Needs
Truly think about what you want and need for your space. Only pay for what you truly need, but if expansion is in your future, consider that as well. Stick to your budget and location preferences, and don’t sacrifice the aspects of the property you really desire.
Your Best Commercial Lease Ahead
All of these tips can help you craft the best lease for your business. Mark Schecter is one of the most experienced and respected lawyers in South Florida, so you can rest assured knowing your case will be in good hands. Contact Mark today for more information about how he can help you negotiate your commercial lease.