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Transcript:
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hello this is Tony Lou I am the business litigation attorney here at Focus [Music] do today’s video topic what should I consider when negotiating a commercial lease now signing a commercial lease is one of the most important Financial commitment your business will make the term that you agreed on today uh can impact your company for many years to come whether you are leasing the the office space the retail uh property or an industrial facility negotiating the right lease uh is crucial for protecting
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your financial interest and to ensure a long-term stability so what should you consider when negotiating a commercial uh lease break it down one choose the right Le term one of the first decision that you need to make is the Le term the longer the Le provides stability and often come with more favorable leas rates the short-term Le on the other hand offer flexibility which is ideal if you anticipate business growth or operational changes uh renewal option options should be negotiated in advance to protect uh
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your ability to stay in the space without sudden rain increases and also the penalties right the key takeaway is find the right balance between the stability and also the flexibility based on your business goals two understand the rent structure and increase Etc not all the rent agreement or lease agreement are created equal beyond the base rent you need to clarify how the rent increase will be calculated will the rent increase annually will uh it be tied into the inflation or certain index or Market rates uh additional cost in
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operating expenses are property taxes going to be included how about insurance the mendance and also the utility uh including in your rent or you will be responsible for them also you need to consider the common area minutes the camp for short the charges you know what are the cam charges if the Poli share the commercial space understand what cam fees covers and whether or not uh they can be capped also to avoid voice surprises hidden rent escalation and unexpected fees can make at least far more
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expensive over time then it appears up front three Define the responsibility for menance and repair commercial thises often divide the responsibility between the landord and the Tenant and uh what is landord responsibility for of course the structure repairs the building compliance also the major menance should be their obligation what will be the uh your response uh now what will you be responsible for air condition menance for example minor repairs or daily upkeep may fall on you you really need
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to check on the dis agreement and make sure you have a clear understanding uh who is handle what responsibility internal maintenance also the next issue is uh who handles the compliance issue ensuring the prop uh property means the zoning the Ada the safety regulation uh should be clearly online okay negotiating these terms up front prevent costly dispute later on that’s for sure four uh plan business growth and space modification as your business growth uh your space uh needs to adapt ten
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Improvement allowances uh can you negotiate from the lenord for example for modification how about space modification are you allowed to reconfigure the office layout to install certain custom future or expand within the building how about expansion options if you need more space in the future does your uh Le allow growth within the property being proactive about your future business uh needs to ensure your leads support your company growth five is to negotiate an exess strategy even the best uh
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planning circumstances change right you need to have exess strategy to avoid Financial penalties if you need to the space early early termination uh Clause you can negotiate an option to exit early uh under a specific uh condition how about suing options can you sub the space to another tenant if needed how about assignment right if you sell your business can the new owner take over your business and take over your lease without penalty without these options you could be stuck paying rent on a space that no longer
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need so plan accordingly the final thought negotiating a commercial lease isn’t just about securing a space uh it’s about protecting your business interest Financial stability and long-term growth before signing a Le consult uh an experienc business edication attorney to ensure that um the these term in the lease align with your business goal and minimize the future risk if you need help uh reviewing and negotiating the commercial lead our firm is here to assist you contact us today for a consultation and let us help you
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review uh the Le View and make sure the this work [Music]
This transcript was AI-generated.
