Tips for Negotiating a Commercial Real Estate Lease
When starting a business you have several options available when choosing a location, and with so many choices available it can become difficult to make a final decision. Even after you’ve found your ideal location you have to go through the process of negotiating the lease.
Before you start the process of negotiation, it’s a good idea to seek the consultation of a Ford Lauderdale commercial real estate attorney for advice, so that you get all of the terms that you want in the contract and so that your interests are protected.
Decide on the rent and the term of the lease
As one of the first negotiation steps, you’ll need to decide on the term of the lease and the rent that you are willing to pay. You don’t want to commit to too long of a lease term, but you also want to give yourself the option of renewing the lease if you need to. For example, you may want to stay in your location after one or two years, and if that’s the case you will want to be sure that you have the option to renew in the contract.
Negotiate the expenses
Expenses like maintaining the shared facilities and other maintenance costs need to be outlined in the contract. Expenses can be charged several different ways including as a flat cost, metered cost, or as a cost per square foot. Decide how you want to be charged for maintenance costs and negotiate this with your landlord so that you know what to expect in terms of your bill. Also, have your contract reviewed by an attorney to ensure that there are no hidden or unexpected maintenance costs.
Go through the lease with your attorney
You need to read every term of your lease to ensure that it is fair, and there may need to be extra terms added in such as an exclusivity clause to protect you from competition, or a sublease clause if your needs end up changing. Talk to an experienced Fort Lauderdale commercial real estate attorney before you make your final decision, and be sure that you ask questions and fully review your lease before signing.
Mark Schecter is an experienced commercial real estate lawyer who can help you with negotiating your commercial lease and give you advice. If you have any questions at all, contact Schecter today for a consultation at (954)-779-7009.