5 things you need to know about Reviewing a Commercial Lease
- If you start a new venture or grow as a business it’s likely you will need commercial premises. Paying rent generally makes up a large percentage of a small business’s expenses, so it’s important that you enter into a commercial lease agreement on terms which work for you and your businesses.
- The main issues you’ll want to negotiate when deciding on whether to enter into commercial lease agreement include the rental amount, a rent free period, an option period to extend the lease, what the premises can be used for, whether you can sub-lease the premises, and how any increases in the rent will be calculated.
- It is likely the landlord will require either an amount of bond to be set aside, or a guarantee of some kind to be offered. It’s highly recommended that you avoid providing a personal guarantee if possible.
- The legal requirements around commercial leasing vary from state to state, so it’s important that you work with a lawyer who has experience reviewing commercial leases from the state you’re in.
- Finally, don’t be rushed into signing a commercial lease agreement. A commercial lease agreement is a legal obligation that generally goes for several years. Work with an experienced lawyer to ensure any legal traps are discovered and ensure you are able to sub-lease the premises should you wish to do so.
Commercial Law, Contract Law, Information Technology And Online Law, Intellectual Property, Capital Raising LawExperience:
Bank of America Merrill Lynch, Baker & McKenzie, Hogben Group
Employment, Franchises, Business And Commercial, LitigationExperience:
Clinch Neville Long, McCabes, Neville & Hourn