Negotiating A Commercial Lease

Many small business owners are surprised to find that negotiating a commercial lease is a far different process than the one for residential property. Knowing these key differences is vital to an owner’s ability to start and maintain a small business.

Special Considerations for Negotiating a Commercial Lease

There are many things to take into consideration when drafting a negotiation proposal for a future business space:

• Because of research that has touted the benefits of having business pets or allowing employees to bring their pets to work, many businesses are now encouraging this trend. A business should always make this known while negotiating a commercial lease so accommodations can be made.
• Build-outs should always be an important part of negotiating a commercial lease. This is defined as any improvements, modifications, expansions and additional fixtures that are added to the space. The lease should clearly state which party will be responsible for the labor and cost of the build-outs, as well as who will be the owner of this property once the lease has expired.
• Rules pertaining to signage and traffic should be discussed before negotiations start. A business will want to negotiate whether exclusive parking areas are allowed, how the business may advertise and when, as well as which rules that apply to any store property placed outside the primary lease area.

Consider hiring a small business broker like to help you with a commercial lease negotiation.