Pay attention to the fine print in commercial leases
On behalf of Kadish & Associates Law Group posted in Commercial Real Estate Transactions on Friday, June 30, 2017.
Commercial leases are usually a lot more involved than residential leases. There are often clauses in the commercial leases that you have to read and review carefully because they could have a big impact on your business’ profitability and future. We know that you might have some questions about what you should look for when you read the lease. We can help you go over the contract to help you learn about what you are in for.
One consideration that you have to check is whether there are limitations on the use of the space. You might have your business all planned out now, but what if the scope of the business changes or you begin to branch out some. The last thing that you need in that case is to find out that you can’t grow your business because doing so is against your lease.
Another consideration is about money. Some commercial leases, such as those for restaurant spaces, have clauses that require you to pay a monthly lease fee plus a specific percentage of your profits. As you can imagine, this could lead to considerable payments to the landlord if the business is successful.
Along the line of finances is the issue of who is responsible for paying upkeep and repair costs. Determine whether you or the landlord will be accountable for these expenses.
We know that you might have some points that you are unsure of in the lease. We can help you to go over everything so that you know exactly what you are signing and can consider how it will impact your business.