Commercial leases are usually not all-inclusive, and often feature variable costs that combine with “base rent” to form a “total rent” figure that may potentially change from month to month. Renting a space for your business is often a little different than renting an apartment or house for your residential use. For that matter, it is a good idea to confirm-before agreeing to anything-that the property is properly zoned for the uses you have in mind. If your business is engaged in light industrial activities, the right location can provide space for your business to operate and grow – without having to deal with complaints from neighboring businesses about things like noise or dust. If you’re in retail, being surrounded by grocery stores and restaurants would likely mean fewer customers in your store than if your business were surrounded by other retail stores. To the extent possible, you may be wise to ascertain what similarly situated properties rent for in your community.įor businesses looking to lease a property, you want to be aware of what businesses will be around you because this can affect what sort of customers come into your establishment. For example, if the property has easy access to major streets and high quality businesses nearby, your property is probably more valuable on the rental market. For landlords, it’s important to adjust your rental agreements in consideration of the surrounding area. Location can make it much easier, or much harder, for your business to grow and succeed. While not technically part of a commercial lease, location is a factor that is important to consider before you sign on the dotted line. And for these reasons, NFIB recommends that you consult an attorney before signing a commercial lease-especially if it is going to be a long-term arrangement.Īs the old saying goes: in real estate, location is everything. Accordingly, you must take contract negotiations seriously. This means you really need to understand what you are signing.įor starters, it is important to understand that commercial tenants don’t usually receive the benefit of consumer protection and landlord/tenant laws like residential tenants. They may include complicated formulas and strict provisions outlining rights and responsibilities. But of course, commercial leases can be complex. Whether opening your first location or looking to upgrade to a larger space, signing a commercial lease is often an important step in growing your business.
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March 2023
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