BUSINESS LEASE AGREEMENTS
A Commercial Lease Agreement is a written contract entered into between a Landlord and a Tenant for a particular retail establishment which sets forth the rights and obligations of each party over a designated period of time. The lease you sign can have a profound impact on the success or failure of your business. Your lease can bind you to a property for up to twenty years, meaning that the rights and obligations of both you and your landlord will be established at the beginning of your relationship but interpreted countless times over the next one to two decades.
Lease provisions such as: lease term, rent, additional rent (e.g. real estate taxes, insurance, utilities, CAM charges), assignability, personal guaranty, and options to renew are extremely important and must be carefully considered and negotiated. Commercial leases can be extremely complex.
When you find a desirable location, ask whether a similar business previously occupied the space. Just because a location is zoned to permit the business you are seeking to operate, does not mean that the location is viable for your business. Additionally, if you anticipate a need to renovate, consider bringing your contractor with you when you view the space so that he can give you a realistic expectation of what the renovations needs and costs will be. I would also encourage you to speak with tenants of the building as well as neighborhood residents to get their opinion on the location and your concept.
If the location is suitable for your needs, proceed cautiously through your negotiation of the commercial lease terms and retain an attorney if possible.
If you are considering entering into a commercial lease for your business, please call DiPasquale & Summers for a Free Consultation.