What to know about renting commercial space

On Behalf of | Mar 5, 2020 | Real Estate |

In many cases, there is room to negotiate the final terms of a commercial lease. For example, market conditions will likely play a role in the rental rate a landlord charges. If the economy is soft, it may be possible to ask the landlord to reduce the amount of rent that is charged. In some cases, the tenant will be responsible for paying property taxes, insurance and maintenance costs in addition to the base rate.

Tenants might also be responsible for the cost of any improvements made to the property. Those who plan on building out a space should check to see if they will need to return the building to its original condition before vacating the property. Businesses that rent commercial space should consider adding a clause in their leases regarding permitted use of adjacent land or other portions of a building.

Generally speaking, landlords will provide more leeway for those who agree to a long-term lease. Typically, a long-term lease is one that lasts for more than a year or two. However, business owners should only negotiate such a lease if they believe that a particular location will meet their needs for an extended period of time. Tenants can help themselves by negotiating the right to sublet a space or reassign a lease before it expires.

Business owners who are looking to lease commercial property may want real estate law attorneys to help them negotiate the terms of their leases. This may make it possible to negotiate favorable terms in a timely manner. Alternatively, an attorney may review the terms of a rental agreement before a prospective tenant signs it. Legal counsel might help a tenant resolve a dispute with his or her landlord either in court or through settlement talks.