Improvements. This part of the commercial lease defines the types of improvements and upgrades that can be made for the space and who is responsible for the costs. Many aspects of this section can be negotiated. Get an idea of market rents in the neighbourhood you are considering and compare them to the rent charged by the landlord. Talk to a commercial broker to get current market rental rates. This information can help you negotiate lower rents if the number of applications is high. Duration is the length of time you agree to occupy the property. Our lawyers strongly recommend taking the time to think about how the current commercial lease term reflects your company`s future expansion plans. Whether you`re a new retailer renting your very first physical store, or you`re a multi-store retailer who wants to expand to other sites, your retail space rental will be one of the most important things you put in place. A bad lease can relieve you financially, even if you reach all your sales goals. Tenants who agree to sign a long-term lease win at the bargaining table.
If an owner knows that an office will be occupied for a longer period of time, they are more likely to make concessions. However, long-term leases are not ideal for all businesses. If your future requirements are uncertain or if you are starting a start-up, a short-term lease may better match your business. Their goal of basic rental negotiations is to achieve the minimum rental period with the maximum benefits. Work with your landlord to find out what they are willing to give in exchange for a committed lease. The services of a tenant representative do not stop when you enter the negotiation phase of a commercial lease. A tenant`s representative will remain with you for the duration of the trial and act as a lawyer. As their costs are borne by landlords, hiring a tenant representative is a simple and economical way to sharply tip the bargaining balance in your favor. Late fees.
If the tenant pays rent too late, the late costs described in the commercial lease are charged. This may be a flat rate or a percentage of the monthly rent. There are pros and cons to short-term and long-term leases. For example, if your business is just starting out, our lawyers would recommend a short-term lease because it gives your company the flexibility to move around and expand. If you are a large company with a large staff and wants long-term security of premises, then a long-term lease is the best option. Key location: There are several essential elements of a commercial lease, such as rental fees, surcharges, deposit and the duration of the lease. A rental agreement is a very heavy obligation and can expose you to significant personal liability. Ideally, you should sign a lease agreement on behalf of a separate limited company and not on your own behalf. This means that the company is responsible for the debts imposed by the lease. Not all owners will agree and will be able to seek security if you offer to take the lease on behalf of a limited company, especially if it has little or no financial history.
A sublease clause is a good thing if it has been added in addition or instead of lower termination fees. If you have to move to another room, you can recover the lost rent with subleasing. You may want to extend the option, but you don`t want to stop yourself from paying for more space than you need.