If you want your business to succeed, then you need a business space that suits your needs. That sounds easy enough, but locating the right space and negotiating an appropriate commercial lease can be more challenging than you expect. As a result, many businesses are quick to sign off on a property that they think fits the bill without thoroughly considering the implications of the lease agreement. This can be dangerous.
Lease terms to watch out for
With that in mind, let’s look at some key provisions that you’ll want to pay particularly close attention to if you’re thinking about leasing a commercial space.
- Any use clauses that may restrict the activities that you can perform in the building or on the premises. Make sure that any unclear language is revised to be specific so that there’s no confusion as to the restrictions that are placed on your business operations. Similarly, consider whether there are any zoning issues that may be problematic for your business activities.
- Rent clauses that might specify how your rent payment will increase or decrease depending on the circumstances. You need to be aware of the triggering mechanisms for rent changes so that you’re not taken by surprise and left with financial challenges.
- Lease assignment and subletting provisions. Many commercial leases are long-term. If your business runs into trouble, you may need to downsize and move to a smaller space to save money. If that happens, you’re going to need a way to get out from under your commercial lease, which may mean assigning the lease to another business or subletting to another company. Know what you can and can’t do in this regard so that you can make a decision regarding the lease that is right for you and your business.
Don’t put your business at risk
A commercial lease may seem like a straightforward piece of getting your business up and running, but it can end up being much more complicated. That’s why it’s wise for you to have a business law attorney by your side so that you can better ensure that your business isn’t being unnecessarily put at risk.