As someone who is looking for a commercial property to rent, one of the things you might not yet have considered is working with an attorney who can help you negotiate the lease on that property. You may want to consider it, though, because the right negotiation strategy could help you get much more protection as you take on the lease for this property.
Negotiating a commercial lease is simply a part of the normal process of renting a commercial property. Knowing how to negotiate can help you avoid costs that you weren’t expecting and protect your right to run your business there for the full term of the lease.
How can you best negotiate a commercial lease?
According to the U.S. Chamber of Commerce, the first thing you need to do is to understand what kind of lease you’re agreeing to. There are three forms that you could come across:
- The gross lease, which requires you to pay a single monthly fee for all expenses.
- A net lease, which has lower monthly rent costs but an additional percentage added on in fees for operating expenses.
- A modified net or gross lease. These kinds of leases could be similar to net or gross leases, but they will have negotiated portions that set them apart as a way to compromise.
Many people prefer to have a gross lease, because it is a fixed fee each month. You’ll need to decide if you want to have a fixed lease or if you’d prefer to rent at a lower rate and add on operating costs as a fee later.
Once you know the kind of lease that is being offered, you can start going over the terms of the lease with your attorney. Always research the property that you want to rent. Is the cost in line with similar properties? How long can you be there? What are the fees for exiting the contract early?
There are many aspects of the lease that you may want to negotiate, which is where your attorney comes in. They will make sure that you are negotiating for what you need and that any agreements are legally binding.