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Common commercial lease mistakes

| May 6, 2021 | Firm News

Depending on your business and territory, owning a brickandmortar location may not be feasible. You also may not want to have the risks and obligations that come with owning a building for your business.

For some owners, a commercial lease can seem like a reasonable contract until there is a situation where you need greater flexibility. While it can be challenging to foresee every circumstance before you sign on the dotted line, being aware of some common mishaps can help you know what to look for in your lease.

Here’s what to avoid when you are considering a commercial lease.

Skipping negotiation

Some business owners find that negotiation comes naturally. In contrast, others tend to skip this step and decide on a contract based on the first offer. Very plainly, you will not know if the landlord is willing to adjust the termsunless you ask.

Landlords create contracts that will give themselves the best terms possible. This does not mean that they are not willing to negotiate to fill a vacancy. If you want a better deal, you need to ask for one.

Dismissing the term

Often, future tenants will assume that the term is nonnegotiable or that a longer lease term will get them a better deal. These owners get locked into a term that becomes inflexible and does not suit them or their business.

Pay attention to how long the term of the lease is and what happens if you need to leave early. There may be stiff penalties if you want to end your lease before the end of the term. A longer lease term will not be a better deal if you lose the ability to be flexible for your business.