What You Need to Know Before Leasing Commercial Spaces
A commercial space is an expanse that is left unoccupied for space products that are not necessarily for governmental purpose. These products include goods and services that are used by the general public. It should be mentioned that renting a commercial space is so much different from a residential variety; hence, there are essential things one needs to be familiar with before leasing commercial space.
Commercial Lease and Private Lease: How They Differ?
- Commercial lease is oftentimes not subjected to consumer protection laws wherein the lessee’s privacy is guaranteed.
- Commercial lease does not follow standard forms of agreements. Contracts are based on the landlord’s needs.
- Commercial lease is a long-term binding. Once the the agreement is put down in white and black, he or she cannot easily change the terms and conditions of the contract.
- Commercial lease involves longer negotiation process.
Essential Reminders when Leasing a Commercial Space
- Consider the budget and the length of the lease. As mentioned previously, leasing a commercial space is a long-term binding which can run up to 10 years! If unsure about the duration of lease, go for short-term agreement which is renewable.
- Read the fine prints of the lease agreement prior to affixing the signature. Peruse and examine the terms and conditions.
- See the space. Are there enough cabinets? Is the safe place? Is it a good spot for consumers? Are there many competitors in the place?
- Know how the lease charges are computed. Is the property tax included? How about the maintenance cost?
- Determine who will be financially in-charge of the modifications, or who will pay whenever improvements are made in the place. The same thing goes for maintenance and repair of the premise.
- For safer procedural process, consult a real estate specialist or a broker who will negotiate with the landlord.
- Find out what other possible expenses that may incur during the lease stay other than the monthly cost.
- Protect ones business. This can be done by adding clauses to the lease agreement. For example, sublease clause allows the lessee to sublet the commercial space to another business, or exclusivity (co-tenancy) agreement which restrains landlords from leasing the near spaces to other direct competitors of your business.
According to the Americans with Disabilities Act (ADA), establishments or premises that employ workers of more than 15 people should add services for disabled people. For instance, construction of ramp area, or creation of entrance/exit doors exclusive for debilitated customers.