Whether for a home, an apartment, a towering office building, or a simple storefront, leases can be complex documents to navigate. But commercial leases — those agreements that encompass the legalities of renting business properties — can seem especially complicated to the untrained eye. Commercial and residential real estate attorney Alan Panek of the Alan A. Panek Law Office, S.C., in Wisconsin Rapids, WI, shares some important concepts any business owner should consider before signing a commercial lease.

Negotiate the Terms Beforehand

In the vast majority of commercial real estate leases, the items the document covers are negotiated beforehand through the lessor’s and lessee's respective attorneys or brokers. As a business owner, your priority is safeguarding your enterprise and getting the most advantageous deal possible. Your lawyer or broker can negotiate any important points you want the lease to cover, but in general, leases cover the following aspects of renting commercial space:

• The lease term and rate, as well as escalations (i.e., when and how much the lessor can raise the lease rate).
• Concessions such as allowances for tenant improvement construction.
• Parking.
• Subleasing, expansions, and renewal options.

Consider the Future

Before you sign on the dotted line, also consider the future of your business. If a lessor wants to rent a space for a certain number of years, but a lessee only wants the space for a fraction of that time, including a termination clause would honor the lessee's shorter commitment without penalty to them. This would come in handy for a business whose future or growth potential is uncertain. Also, think about renewal rights. Do you want to have first consideration to renew your space when the lease is up? If so, discuss with your attorney the possibility of adding first renewal rights into the original lease you sign.

The Alan A. Panek Law Office, S.C., is here to guide you through the process of negotiating and approving a commercial lease. Attorney Panek also offers representation for general business matters, estate planning, and elder law cases. Call (715) 421-4900, or visit his firm online to make an appointment today.