Here’s what to consider if you’re searching for new commercial property.
So your business has grown, and it’s time to seek out a new location. Congratulations!
Scouting a new location for your business is a fun and exciting process. But, in addition to all the planning and anticipation, there can also be a lot of stress. This is especially true if you have not been in the commercial real estate market for a while.
In many ways, the terms of your lease can make or break your business. Even the best business plan will have a hard time surviving out-of-control rent increases or property defects that don’t get fixed.
What do you want in your lease?
The truth of the matter is that most people aren’t in a position to negotiate a commercial lease by themselves – the terms are complex, and the stakes are high. It is always better to have an Arizona real estate lawyer by your side.
With that said, it can be very helpful for you to have an understanding of what you want to get out of the lease before you start the process. Here are a few things to consider:
- Services: What kind of services do you want the landlord to cover? For example, do you want the landlord to provide janitorial services, manage trash collection, or manage outdoor landscaping? Will the landlord take care of regular maintenance and repairs to the property?
- Utilities: Will you pay the utilities yourself, or will they be included in your lease? If they are included in the lease, what should happen if you use an exceptionally large amount of water, gas or electricity in a particular month?
- Signage and modifications: Can you install signs for your business? If so, are there restrictions on where you can put them? Are you allowed to make modifications to the property or install fixtures to suit your business?
- Rent increases: What is your tolerance for rent increases? Is your business equipped to handle them? Most landlords will want to raise the rent periodically.
- Lease duration and renewal: How long should the lease last? If you choose to renew the lease, how far in advance do you have to give notice?
- Early termination: What are the procedures for terminating the lease before it is supposed to end? Will you have to pay an early termination fee? Are there certain rules you will have to follow that, if broken, would allow the landlord to cancel the lease?
Of course, these are just some of the factors that will come into play during lease negotiations. What’s important is that you have someone to help you stand up for what your business needs. After all, your will certainly have someone looking out for them.
Business owners in the Phoenix area can contact the lawyers at Shein Phanse Adkins P.C. for help. Call us at 480-922-3933 to schedule an initial consultation.