If a business is trying to enter into a commercial office lease, the ability to select and negotiate for this space is very important. Anyone armed with the right information can enter into a standard commercial office lease.
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Leasing commercial office space is faced by many companies and requires a concentrated effort to reach the best decision possible. So much depends on the success or failure of reaching a resolution of this issue. If the right site has been found, then is the time to consider that selection and what would be included in a lease agreement. This would be followed by looking at the site to see if it is truly well- suited to the company.
If the site appears to be the right one, documentation must be secured to begin the process of composing the necessary parts of the leasing contract. This should be done right away so that both parties in the agreement will have adequate time for a thorough review of that documentation.
Following is more detailed information in the form of successive steps that can help a potential tenant be sure that nothing is forgotten in the leasing process.
Step 1: Seek Expert Advice
Signing contracts and agreements can be very risky if a business does not understand the basic elements. All terms and conditions relating to the lease should be clarified and understood by the landlord and the tenants. If any problems are encountered, it is highly recommended to seek legal advice. Everything should be clear, outlined and mutually agreeable.
Step 2: Negotiate Commercial Lease Terms
This is the most important step in the leasing process. Procedural guidelines must be developed, trust established, and all relevant facts clearly outlined while negotiating the agreement. One important thing to consider is whether or not the meeting place is conducive to making a good decision. A good strategy is to select a place that eliminates distractions and interruptions.
Phases of Negotiation - There are different phases in the negotiations process as outlined below:
Step 3: Improving Final Forms
After the bargaining process is done and the final documentation has been prepared for both parties, review and make sure that the terms and conditions stipulated on the document are clearly understood. Ensure that everything that was discussed and agreed upon during negotiations is included in the agreement. After signing the agreement, make sure to obtain a copy of the document.
Step 4: Handover Process and Fitting-out of Premises
The final step, after signing of the commercial lease agreement, is the transfer of the new property from the landlord to the tenant. Before this can happen, preparation of the property takes place. If approved as part of the contract, the business owner can redesign the lay-out of the office space or make improvements to the existing space, such as painting and ensuring there is good lighting. The property should be functional and appealing as this will affect the productivity of the business.
Leasing commercial property is a complex process. Consult a lawyer to explain any terms of the agreement that may be confusing. Never sign a contract if the terms and conditions are not well understood or agreed upon. Then the end result will be exactly what was desired!I
This is a lease that you would sign to rent a warehouse, office, or other commercial space and use it to run a business. The terms in a commercial leasing vary widely but most of these types of leases are written to benefit the landlord, not the tenant. Depending on how many other businesses are interested in renting this commercial space you may be able to negotiate better terms with the commercial landlord but many times the landlord is set as to what they want the leasing terms to say and will not negotiate.
There are two types of leasing options that are commonly found in a commercial leasing agreement which are:
• Net lease-this is when the tenant agrees to pay a set rent amount along with a part of the landlord's maintenance expense and monthly taxes.
• Gross lease-this is when the tenant agrees to pay a predetermined rent amount that also includes the landlord's expenses.
When signing a lease agreement the tenant will usually be required to pay the first and last month's rent at the same time to protect the landlord by having an extra month already paid in case the tenant decides to leave without giving the landlord notice. Have an attorney that specializes in commercial real estate go over the commercial leasing agreement before signing it.
In a shopping center, for example, the leasing rent for conveyancing lawyers a retail space could be calculated by price per square foot. With a shopping center commercial leasing agreement it will usually contain specific terms such as where the tenant may have deliveries conducted, rules about the store's displays, and what hours of operation the store will be allowed to have. There may also be written into the commercial leasing agreement for the retail space that a certain percentage of the profit the tenant receives be paid monthly to the landlord in addition to the monthly rent.
If the business owner, or tenant, feels that they can make a good return on their investment and has the money for a down payment then it might be better if they own the property instead of leasing. If this is not true then commercial leasing is the alternative. Many times new businesses will have the down payment needed to buy the property but instead chose commercial leasing and use the down payment instead for better business investments such as obtaining more inventory for their new business. In addition, when using commercial leasing you do not have all the responsibility that goes along with owning a business.