Getting a commercial space in the right budget, the perfect location, perfect infrastructure, and the commercial lease you are about to sign checks all the boxes. You may be tempted to go ahead and sign the commercial rental lease. Did you know there is no standard form for a commercial rental lease? It is tailored as per the requirement of the commercial space owner? You need to make sure that your interests are being balanced in the rental lease. How do you do that? Consider the following aspects.
The standard way to calculate a commercial lease payment is a number of square feet times the cost per square foot. However, there is more to how the cost is accounted for. It may include the cost of parking and other hidden costs that you need to be aware of. Having insight into the cost calculations can give you an opportunity to negotiate the additional costs. You must always know what you are paying for and ask the commercial space as to who would be responsible for paying for the janitorial services, utilities, cost of maintenance, and common area maintenance fee.
What are the facilities being provisioned in the commercial lease? Does it have air-conditioning, security, broadband services, janitorial services, etc.? Most commercial spaces have a blanket charge for these facilities. Make sure you are informed of the permitted use of commercial space. Some spaces have a restriction on the use of the commercial premise that can hinder the business operations.
Commercial leases can run for long, which is usually in the range of 3-10 years. You are at full liberty to negotiate the term and opt for a “bail-out” clause if you are only starting out your business. You need to have a clause for what will happen when the commercial space isn’t ready on time. This can delay your move-in process and further business operations. Also, make sure that the commercial start date and end date are as per your verbal discussion.
Business cycles are unpredictable and the commercial leases are long and binding. In situations of losses, you might consider subleasing the space to cover the initial investment costs incurred. Alternately, if you ever wish to cut down the size of the operation, a sublease clause can come in handy. At your discretion, the lease should have a sublease clause added, which also mentions your sublease privileges.
There are many factors to consider before signing a commercial rental lease. It is best to deal with the most trusted commercial rental properties like Forum. The best way to get a safe and mutually beneficial deal is to get an attorney, who is well versed with the terminologies and the negotiation terms.