No matter the size of your business, finding the right space for it is essential. Because the lease you sign is a commitment and is very different from renting a residential space, you should understand how commercial leasing works. Use the guide below to learn how to negotiate lease terms that are beneficial for your business’s goals.
The Basics of Commercial Leasing
How It Varies From Residential Leasing
Unlike residential leases, there are no standard forms that landlords and renters will sign to make their agreement. This offers a lot more room for negotiation and flexibility in the terms you want to set, so don’t be afraid to ask for what’s important to you. It also means that you need to read through the terms carefully before signing anything, as you cannot make any assumptions for what you’re signing.
These leases tend to have longer terms as well. They are legally binding contracts that are not easy to get out of if you change your mind. There are not as many laws in place that protect you as the lessee, such as maximum security deposits that the landlord can charge.
Tips for Acquiring a Commercial Lease
Ask for a full-service lease—this is the most common type provided in commercial leasing and is best for the tenant, since it means the landlord pays for all expenses associated with the property. This includes property taxes, insurance, utilities, taxes, maintenance, and repairs.
Consider the length of your lease term carefully, especially if you want the space for a long time. However, most businesses prefer a shorter length so they can change spaces in the future if their business grows or their needs otherwise change. If you do choose a shorter lease, ensure there is a renewal option so you have the choice to extend your lease at the completion of its term.
Be sure to discuss details such as whether you’re able to sublease, if you can put signs up, what parking is included, and whether the landlord is allowed to rent out another space in the same complex to a competitor of your business.
Galvin Realty Group Inc. has been in the commercial leasing business of Rochester, NY, and the surrounding area since 1987. This commercial realtor will leverage their experience and connections in the industry to find you the perfect space and negotiate a favorable lease on your behalf. Learn more about their commercial real estate services online and call (585) 546-1290 to get started.