When a business receives a contract to sign, owners should always carefully review the terms of the contract and engage in negotiations until the terms are fair and favorable. However, too many business owners fail to do the same when it comes time to sign a commercial lease. Commercial leases are legally binding like any other type of contract and any unfavorable terms can significantly affect the success of your business. Therefore, these contracts should always be carefully reviewed by a business consulting attorney and negotiated until you agree with every term.
The following are some terms that are commonly negotiated in a commercial lease:
- When a tenant can take possession of the premises.
- The right to make adjustments to the space as needed for business or aesthetic purposes.
- The amount of rent to be paid and when it is to be paid (lump sum or installments).
- How and when rent can be increased.
- Renewal options for the lease.
- Termination options for the lease.
- Use clauses, including restrictive use provisions or exclusivity rights.
- Who is responsible for certain utilities, common areas, and repairs.
- Warranties that the property is up to code and in compliance with all relevant laws and regulations.
When you find the perfect location for your business, you may be hesitant to challenge any terms out of fear that the property owner will decide not to rent the space to you. However, property owners are engaging in a business, as well, and should understand the need for negotiation to ensure a successful tenancy.
If a property owner is not agreeing to specific terms, it can help to enlist a legal professional for further negotiations. Commercial leases can be worth a significant amount of money and you want to be sure that all terms are favorable before you sign. Our business attorneys can review your lease to identify any opportunities for negotiation and can work with the other party until the lease agreement adequately protects your rights and interests.
Call 732 238-8686 today for more information.
It is surprising how many businesses do not adequately negotiate the terms of their commercial leases. This should be a highly important step in ensuring that you have a secure place for your company that suits your needs and encourages success. At the law firm of Bowne Barry & Barry, we can help with commercial lease negotiation, as well as many other aspects of your business. Please contact us today to discuss how we can assist you.