Finding the right real estate for your business can be tricky. Location, amenities, proximity to your market, and cost are some of the most important aspects of your commercial lease. Cost in particular is one of the biggest expenses that is burdening your business. It can be a considerable influence on your profitability. So, whether you are just starting your business and looking for business space or you are moving to new offices, it is wise to consider these costs. It is important to try and keep this cost low. There are numerous tips for negotiating your commercial lease that you should learn about here.
Negotiating a commercial lease – why do it?
Negotiating your lease is one of the ways to keep your business affordable and profitable. It can be quite an expense but most companies make the mistake of simply excepting the terms landlord provides. This is a big mistake, so before calling spydermoving.com to help your move make sure to negotiate your lease terms. Most leases are open for negotiation and the initial offer is just a rough draft. Excepting it can lead to a lot of troubles and hidden expenses. So the first tip is to read the lease, research, and try to negotiate better terms.
Here are a few commercial lease negotiating tips to go by:
- Decide on the length of your lease,
- Research comparable leases
- Look for hidden expenses
- Ask for better conditions
- Look into termination terms
The length of your lease can be a factor and leverage in negotiations. For small start-up companies, the usual lease is 2 years long. However, the potential for longer-term leasing can make the landlord more flexible by offering better conditions. Keep in mind that your business’s needs come first and the lease length should reflect that.
Research the rent in the area to have a clear picture of the expenses. This will help you negotiate a fair price and keep the cost down. You can also negotiate the security deposit and return conditions.
Make sure you understand the cost that is calculated in the lease. Before you find experts to handle the job of your commercial Mississippi relocation make sure you are clear on the expenses and cost. Gross lease will incorporate all of the cost in addition to the rent. The net lease will have an additional cost added to the rent. This means that you may be responsible for paying for the maintenance of the common areas or their upkeep. Make sure you understand the cost so you don’t have a nasty surprise. At the same time, it will give you the material to negotiate a slightly higher lease provided that the landlord is responsible for an additional cost.
You can also request better conditions in your lease. Request an option to sublease the property. You can also ask the landlord to restrict leasing out to companies that are in a similar business. Or you can request a co-tenancy clause that will allow you to break the lease under certain conditions.
Look into your termination terms. Research the cost of early termination in case you have to leave earlier. Also, understand the terms of the eviction and the rent you will have to pay.
Leasing a commercial property is not that simple. You should at least read the terms to be able to negotiate. You should also consider hiring a lawyer to help you get through the lease terms.