One important matter that Sonoma County area business owners encounter is choosing the right space for their operations. Location may seem like it is the most important factor to consider, but it is one of many things that influence the practicality of commercial leases. Business owners who understand their leases can use their knowledge to negotiate better terms.
It is important for you to choose your facility/building wisely. Once you sign a commercial lease, you are legally bound to abide by the terms. If an issue arises between you and the property owner, your lease can provide the framework on steps you can take to rectify it. Here are some key considerations on commercial leases.
Know what you are getting
You should never accept things at face value in real estate. You need to know the ins and outs of any commercial properties you are thinking of renting before you sign. Research the neighborhood of the target location. Identify all potential risks and hazards or each commercial structure. Failure to exercise due diligence during real estate transactions can lead to missed and failed investment and business opportunities.
Commercial leases are usually several pages long. Though your eyes may glaze over while you read through, mark all key provisions you see. Also, include notes on any concerns you have while reviewing the document. Organize your notes so you can use them to help keep you on track during commercial lease negotiations.
Negotiate for a better deal
Many small business owners do not realize that commercial leases are often negotiable. Lease agreements are usually beneficial for the owners. Entrepreneurs can use the information they gathered on the building to make the property owner more amenable to their terms.
When negotiating commercial leases, act professionally. Do not offer terms that you would have a problem committing to if you were the property owner. It helps if you think of the lease like the business contract it is.
Location may be key; however, an unfavorable lease is laden with liabilities that could increase your operating, damages and legal expenses. Always weigh the advantages and disadvantages of different locations and contracts with more favorable commercial tenant terms.