Leasing Spaces: What to Look for in a Commercial Lease Agreement

Leasing Spaces: What to Look for in a Commercial Lease Agreement

Introduction

Leasing the right commercial space is a critical decision for any restaurant or retail business. A well-negotiated lease agreement can save you money and provide flexibility for growth.

Key Elements to Review

1. Lease Term:
   Understand the duration and renewal options. Flexible terms allow for adjustments as your business evolves.

2. Rent Structure:
   Clarify base rent, additional costs (NNN), and escalation clauses. Ensure the total lease cost fits your budget.

3. Permitted Use Clause:
   Verify that the lease permits your specific business activities. Restrictions could limit your ability to expand or adapt.

4. Maintenance Responsibilities:
   Determine who is responsible for repairs and maintenance, including HVAC, plumbing, and exterior upkeep.

5. Exit Strategies:
   Review termination clauses and subleasing options to protect yourself in unforeseen circumstances.

Conclusion

Carefully reviewing these elements with the help of a broker or legal expert can help you secure a lease that supports your business goals.