If you are a business owner, the chances are you will run into the challenge of negotiating a commercial lease for your company. Rent is typically one of the biggest business expenses you will have to deal with, which is why you want to make sure you negotiate a good deal. If you aren’t careful during the negotiating process, you could end up paying hidden fees and penalties that dramatically affect your bottom line. You’d be surprised at how many businesses end up signing commercial lease agreements without even reading them over. Negotiating a favorable commercial lease for your business isn’t as complicated as you might think. Keep reading on below to learn some important things to keep in mind when negotiating a commercial lease.
1. Consider Your Current and Future Business Needs
The first thing you should do when you are thinking of signing a commercial lease is to evaluate the current and future needs of your business. If you have a small team of employees but expect to grow in the next few months, perhaps a long-term lease isn’t the right option for you. That way you can have the flexibility of changing things up when you need to. It’s also important to create a detailed budget for your commercial rent so that you don’t waste your time looking at a commercial property that you can’t afford.
2. Research the Property
One of the biggest tools you can use during your commercial lease negotiations is information. If you can spend some time researching the property before you start discussing the lease, you will gain a great advantage. Check for any competitors in the commercial space that might affect your dealings. Try to find out what you can about the landlord and if there have been any legal issues before with other companies. Look at other comparable properties in the area to get a good idea of what you should be paying per square foot. The more research you can do ahead of time, the better off you will be during negotiations.
3. Hire a Great Lawyer
This is perhaps the most important tip of all for negotiating a commercial lease. Having a great business lawyer like the attorneys at Derryberry & Associates LLP can make all the difference in the world. Have your lawyer review the lease in depth to make sure you aren’t missing any important details. Ask your business lawyer any questions you have about the property or the contract to make sure you are choosing the right option for the future of your company. Investing in a great business lawyer can end up saving you a ton of money in the future.
We hope this article has been helpful for those business owners looking to lease commercial property. Things can get expensive quickly if you sign a lease without keeping the tips mentioned above in mind. Always make sure you understand the lease and keep your business goals in mind when signing for commercial property.