Finding a brick-and-mortar location is an exciting step for your business. However, while you might be eager to sign the lease agreement right away, you should ensure the commercial real estate contract benefits you. Asking the questions below before signing can help you make a wise decision.

What Should You Ask Before Signing a Commercial Real Estate Lease?

What type of lease is being offered?

There are several varieties of commercial leases, such as double net, rentable square feet, fully serviced, and triple net. Find out which type of lease you’re signing to ensure you get the best arrangement for your business. For instance, a triple net lease often benefits the landlord more than the tenant since, in addition to paying a base rent, the tenant has to pay all or a portion of the maintenance, taxes, and insurance for using the real estate.

Is the lease assignable?

You should find out whether you can assign your lease to another company, business, or partnership during the terms of the contract without penalty. If the landlord is allowed to terminate the agreement in the event of an assignment, you may want to strike that provision or negotiate the terms to be more favorable to you.

Does this real estate lease allow subleasing?

Like the ability to assign your lease, subleasing gives you flexibility in operating your business on a long-term basis. Commercial real estate leases can last five years or more. During that time, you may want to lease all or part of your space to share costs with another enterprise, so make sure you have that option in your contract.

Can I have a sample lease to review before I sign?

Honest landlords will have no problem giving you a sample lease to review before signing. The document can be over a dozen pages long, so be sure you understand every point in it. Consider having a real estate attorney review and discuss the terms with you. They can then help you negotiate an agreement that protects your interests.

Before you put pen to paper on a commercial real estate lease, consult Stuart R. Norman Jr. for legal advice. Based in Jewett City, CT, this knowledgeable property law attorney offers more than 40 years of experience to business tenants throughout New London County. Business owners depend on his wise counsel in a wide range of real estate transactions and contract negotiations. Discuss your legal documents and issues with this seasoned attorney. Visit his website or call (860) 376-0069 to schedule an appointment.