Leases exist to form a legal agreement between a landlord and a tenant regarding who will pay various expenses and the rules related to leasing the property. Commercial leases tend to have components that are specific to each tenant. While there is no standard format for a commercial lease, most cover the following elements in order to provide clear guidelines for both you and the landlord:
- Leases can be short-term or long-term, ranging from a few months to several years. Your lease should have a defined beginning and end.
- A commercial lease should specify who pays for what and how. Commercial leases vary depending on what the landlord wants the tenant to pay and what the landlord will pay. Each lease will be made up differently because each site is different. You may have a single tenant building or a multi tenant building.
- If the space needs any kind of renovations or improvements then the lease should be very specific as to who is responsible for those repairs or improvements.
- The lease should include any future repairs or improvements also and be very specific as to what repairs.
- The lease should be specific about subleasing and default and government shut downs such as these times of a pandemic or natural disaster such as a hurricane.
- Some leases will include any options and how they are negotiated. This is always good for the tenant because it will give them long term security.
Tenants need to do their research and find out their needs
Location is a big factor. If you are starting a new business, you need to look at the other businesses around the site.
- Understand your needs : Location, price, size, other surrounding businesses, demographics are all factors in the tenant decision.
- Do your research : Find several options then compare them. Not only are you comparing price but location, size, demographics, and condition to name a few. This is when you need to hire a professional. A commercial real estate agent and a good lawyer and a CPA would be handy. Other words form a team to help you in this decision.