easing a space for your business can be a burdensome task. From finding the right location to understanding all the required licenses and approvals, our team is able to assist in breaking down the process and helping negotiate the best lease terms.

There are many aspects to take into account before signing a Lease Agreement and you need to make sure you understand the critical terms and conditions before embarking on this long term commitment.

This is why it is critical that you have a trusted and skilled Real Estate Attorney assisting you before signing any legal documents to help ensure that you understand the agreement and can meet the terms and conditions.

Here’s a look at some basic terms you must understand before entering into a commercial lease agreement.

Rent Cost

How much will you be paying each month will depend on the type of lease and which services may be included. These costs can change over the term of the lease and it is important to understand how this impacts your bottom line.

Additional Expenses

Landlords often pass down additional expenses to the Tenant. Reviewing your lease thoroughly will make sure you understand your payment obligations as well as what is included in your lease, and what items you are responsible for paying in addition to the rent cost. These expenses may include:

• Security deposit
• Insurance
• Maintenance
• Repairs
• Security
• Parking
• Property taxes
• Tenant Improvements
• Utilities

Length of the Lease

Commercial lease agreements are generally between three and five years, although you can negotiate shorter or longer leases. Additional lease extensions, termination options and other provisions can also effect the length of your lease. 

Personal Guarantee

It is very important to understand what type of personal exposure a tenant may face when signing a lease making the negotiation of a personal guarantee a critical term. Knowing who will be liable in case of a lease default can provide peace of mind and protect both landlords and tenants.   

Other Provisions

Its important to remember that no two leases are the same and the addition or exclusion of certain terms can make a huge impact to your business.

A  seasoned real estate attorney will get to know you and your business to help you plan for success in both the short and long term.   

Remember, whether you are a commercial landlord offering space to a business or an entrepreneur looking to lease space for your new or established company, it is important to have a strong commercial real estate attorney in your corner!  Let us read the fine print for you so you can focus on what you do best, make your business thrive.

At Sibila Law, we have years of landlord and tenant experience negotiating office, retail, hospitality, industrial and other commercial leases including ground leases, net leases, operating leases, master leases and subleases, build-to-suit leases, sale and leaseback transactions, as well as the extension, modification, and disposition of leases.

Contact Sibila Law for a consultation on your commercial lease matter.