2torial #0924:
Learn2 Rent Commercial Space (continued)

Negotiate a lease

A broker or agent has shown you several places, and you've settled on one. Now's the time for negotiation. Commercial leases are generally much more complicated than residential leases. Make sure you and your landlord come to an understanding on all the following points:

Length of lease. Business leases tend to last a minimum of three to five years. If you want a shorter lease, expect to pay more. Make sure you understand the penalties you face for breaking the lease, and how you can get out of the lease legally before the end of the term. For example, find out whether you can sublet the space should you need to move.

Tenant improvements. Often, businesses must make alterations or improvements to an office space. Make sure your lease gives you free reign to make any capital improvements you need at your own expense, like network wiring, additional bathroom or kitchen facilities, building or tearing down walls, or adding heating or cooling systems.

Indemnification. As an employer, you and your business face a lot of potential liabilities. Your lease should make it clear who will be financially responsible if someone is injured in your office, or if an accident or natural disaster damages equipment or prevents you from doing business.

Services. If your landlord provides cleaning and security services, are the costs included in the lease? Don't get blindsided by unexpected expenses.

Commercial leases can be very complex. No doubt, the first draft will be slanted in favor of the landlord, but a good broker can help you negotiate better terms. Finally, always have a lawyer review the terms before you commit. Then just sign on the dotted line, and you'll be ready to open up shop in no time.

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