Thinking Of Starting A Business? What To Know About Commercial Leases
Business owners need to know how to find the right commercial lease for their situation.
Many business owners take a great deal of time perfecting their ideas or services. Once they have an idea that could be profitable, there is a rush to get the goods or services on the market as soon as possible to start making money.
Successful businesspersons know that there is a lot that must be done before opening the doors to the public. Finding the right place to start your business is extremely important, because the wrong location could prevent even the best ideas from ever being able to capture the attention of the marketplace.
When looking for the location to start your business, you may wish to rent initially. This gives you a chance to establish your presence and actually refine your business plan, if necessary. When considering commercial real estate that may be available in your location, you need to know how to get the right lease for your specific situation.
Landlords and property owners may have very strict requirements in place that could potentially limit your ability to maximize your profits. Be sure that you carefully review your landlord’s lease terms, and be ready to negotiate to get the deal that works for you.
Some property owners may require you to sign a lease that contains an escalation clause, and this can lead to serious problems for you if you wish to keep your current location. These clauses allow landlords to substantially raise your rent after a certain period of time. If you do not agree to these terms, you will have to start over, again looking for the right place to start your company or business.
You need to be sure that you are getting what you pay for under the terms of your lease. Review everything to ensure that the property matches the terms of the lease. Some landlords will make changes to the property over time, and this could result in less space than is provided for under the lease.
Unfortunately, many businesses never achieve the level of success that the owners intend. If you do not develop a long-term plan that allows you to account for all of your needs, you could find yourself with significant financial obligations due to your lease.
Before you make any decisions that will impact the future of your business, it is essential that you have a clear understanding of the steps you need to take to protect your investment. Speak to an attorney experienced with the negotiation and drafting of commercial leases so that you are able to obtain an agreement that is in your best interests.