The Process Of Negotiating A Commercial Lease
A commercial lease is a written agreement between a landlord and a business tenant. This contract allows you, as the tenant, to use the commercial premises for your business activity for a specified time by promising to pay an agreed-upon rate to the landlord. Signing a commercial lease is a big, legally binding commitment that has a huge impact on the success of your business.
The process takes place in two steps.
- First, you draft and sign an offer to lease. Then, after negotiations take place, you sign the lease containing the details of the talks. Here are a few things to keep in mind about the process:
- Be ready to negotiate. You are not expected to agree to all terms immediately, so be prepared to go back and forth.
- Take the time to understand what is included in your lease. Go through it carefully on your own, then with your team of professionals (lawyer, accountant, property inspector, etc.).
- Get all decisions and changes in writing — a verbal agreement may not stand up in court.
- The amount of rent you pay is important, but other aspects of the lease are also significant.
- Be prepared to walk away.
Negotiating a commercial lease is one of the most important tasks you will undertake for the success of your new business.
CHI Real Estate Group offers years of experience and expertise in this area. We make sure all our clients feel confident with the commercial lease agreements they sign.