Tips for Negotiating a Commercial Lease
What You Need To Know About Negotationing A Commercial Lease
When you’re purchasing commercial real estate, you may think there’s no room to negotiate your contract. Luckily, that’s not the case. Landlords are often open to negotiation so that everyone gets a fair deal. With a commercial real estate attorney on your side, you’ll have the knowledge and expertise to get the best value for your money. Here are a few of our top tips when negotiating a commercial lease.
Look for Comps
Take the time to look at comparable rents in the area and compare them to what you’re being offered. Consider the amount of space you’re looking at, as well as the location itself. Be sure to also look at renewal options. Your landlord will likely want to increase the rent each year, so try to negotiate a cap.
Check the Length
Consider how long your lease will last. Many small businesses lease for 1-2 years at a time, but every property and every landlord is different. Make sure you have the option to renew, but don’t lock yourself into a lengthy lease. You don’t want to be stuck in a location that turns out to be unfavorable, and you don’t want to be unable to move if other options in the area become cheaper.
Are There Hidden Costs?
When you sign a lease, you may not just be paying for the use of the space. Additional costs like upkeep and maintenance can add up fast and throw off your whole budget if you’re not prepared. Learn the current conditions of the space and determine whether you or your landlord will be responsible for repairs. Ask about who will be covering utility costs as well.
Ask About Termination
You will eventually have to terminate your lease for one reason or another, so check to see what the terms are. Find out the circumstances for early termination and ask about any additional fees you’ll need to pay. Request a clause that gives you time to cure a default before eviction in the case that things go south.
Hire an Attorney
A Fort Lauderdale commercial real estate attorney can help you with every aspect of your negotiation. They will have the expertise to help you understand the contract and get the best deal for your company. Mark Schecter is your South Florida commercial real estate lawyer. Contact Schecter Law to learn how Mark can help you negotiate your commercial lease.