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What should I look for in a commercial lease?

On Behalf of | Dec 28, 2020 | Real Estate |

A commercial lease is much different than a lease you would have for a residential property. 

What this means to you is that you need to pay attention to specifics in the commercial lease that you may not in the residential lease. Business News Daily explains that the lease must include information on lease duration, security deposit, rent and any other expenses you must pay. It will also usually include use information. 

Use information

Use information in a commercial lease will typically specify if you have permitted or exclusive use. Exclusive use better protects your business. It helps ensure that no other business like yours can move into that rental space. For example, if you open a clothing boutique in a strip mall and have only permitted use, then the strip mall owner could rent a space out to another clothing boutique, which will be in direct competition with you for customers. 

Other expenses

You want to also pay attention to the other expenses you will pay as part of your lease. The property owner may require you to pay for maintenance or even taxes. The problem with other expenses is that they add up quickly. 

You may get the rental for a price you think is a steal, but once you begin to add in the other expenses, it becomes clear that you are not getting a deal. It is no uncommon for landlords to offer low rents and then add on a bunch of other costs you have to pay. The low rent will draw you in, and if you do not pay attention, you may miss the extra money you will have to pay out. 

Founding Partners Damaso W. Saavedra and Allyson D. Goodwin