After finding your dream business premises, it can be tempting to rush into signing the lease agreement to avoid missing out. There’s every reason to believe your potential new workspace is as perfect as it sounds, but there’s also no harm in allowing the experts to make sure. Before you sign on the dotted line, here is why hiring a Commercial Property Real Estate Attorney can be worth your while.
After browsing one real estate website after another, you may finally come across a building that ticks all the boxes. It might be of the square footage you need, have the number of parking spaces you require, and more.
However, a real estate attorney can ensure that all those outlined features are what you receive. For example, the listing may state you receive five parking spaces, but the catch might be that you have to share them with another business.
Regarding family home rentals, the terms are pretty easy to understand. You pay a set fee over an outlined period, and your utilities are typically on top of that. Commercial lease agreements can be much more complex and aren’t all calculated in the same way.
For example, you may pay a base rent, then property insurance, maintenance, and taxes on top of that. You may even be required to pay for building expenses. Retail spaces can sometimes be even more different, depending on your landlord’s business expertise. You may end up paying a base rent and a percentage of your earnings.
Even if your lease agreement looks straightforward, your chosen real estate attorney can look for any restrictions that may impact your profit potential. For example, they may have rules about opening another business near your current one or even conditions around how you can advertise. If there’s anything you’re not allowed to do, it’s worth being aware of it before you agree to sign the lease agreement.
You can’t predict the future, even if your new premises looks like it’s going to suit your needs for many years to come. You may grow beyond your wildest dreams, or you may need to scale back. There’s even a chance your business could fail.
Landlords typically think of everything to protect themselves, but some agreement terms may not suit your future needs. Make sure you understand your requirements around your term length and the clauses relating to subleasing and termination. The more flexible the terms, the more control you may have over your agreement.
You may understand how much your base rent is and your other associated costs, but you may not understand your rights and requirements about repairs and improvements. For example, some landlords request that tenants cover the costs associated with building system upgrades and repairs, like HVAC systems and defective plumbing. These can impact your bottom line, even if you didn’t think it was your responsibility.
On the surface, a lease agreement can seem transparent and straightforward. However, that doesn’t mean there aren’t a few clauses that could severely impact your business operations. Before you make your decision, consider getting the experts involved. Getting real estate advice may make a world of difference.