Whether you have just started to draft a commercial lease or you are reviewing a lease before signing, there are many different issues you need to take into consideration. If you run a business or have commercial property you want to rent, the details of a rental agreement could have a significant impact on your financial future.
When it comes to commercial property rentals, every situation is unique. Therefore, you need to take an individualized approach to the rental, regardless of whether you are a landlord or prospective tenant.
Issues to go over before signing a commercial lease
The Commonwealth of Massachusetts’ website outlines some of the critical aspects of commercial leases that landlords and tenants should take into consideration. First, it is important for those signing a commercial lease agreement to recognize that these agreements are very different than transactions involving the sale or purchase of commercial real estate.
You should go over the duration of the lease, the rental rate and renewal options. Some leases include the option to purchase the property.
Other aspects of commercial leases
There are different types of leases, such as net leases, modified leases and gross leases. Make sure you review parking space, HVAC matters, security, common spaces, square footage and the ability to access the premises after hours.
Go over any terms you are not familiar with and make sure you resolve any areas of uncertainty before signing. By preparing carefully and setting up a solid agreement, you can increase the odds of a mutually-beneficial arrangement and lower the chances of a dispute arising later on.