Tips for Signing or Renewing a Commercial Lease
You’re busy running your company. That lease for your business premises isn’t at the top of your to-do list. Whether you’re looking for a new place or planning to renew the lease with your current landlord, you might be inclined to let them worry about arranging the lease.
After all, it is the landlord’s property. And they may have a “standard” lease that they use for all of their tenants. You might think, “who am I to question it?”
Don’t be so quick to sign, however. The lease a landlord offers is likely written up in their favour, but you’re not obligated to accept that first offer. As a tenant and business owner, you have every right and duty to question a lease and ensure that it stacks up for you, too.
So if you’re considering a commercial lease, where do you start with your due diligence, negotiations and protecting your company’s interests?
Here’s some key considerations.
Get Familiar with the Market
You don’t have to limit your prospects to the one landlord who waves a lease agreement in front of your eyes. Explore other options before you commit. When you’ve familiarised yourself with the market in your area, you’ll have a better understanding of the value of your current lease opportunity. You’ll likely also gather some facts that you can negotiate with.
Learn About the Different Elements of a Lease
It’s important to know exactly what it is you’re agreeing to when you sign a lease. If you blindly let the landlord set the terms and conditions for the agreement, then you could be forfeiting valuable opportunities to save money and grow your business.
Take some time to do your research and find out what all those lease components are. Here are a few of the most common ones you’ll see:
● Cost of renting
● Length of time you’ll be locked into the lease agreement
● Default and termination clauses that outline what happens when the lease expires or when one of the parties doesn’t hold up their end of the agreement
● Inclusions, or the other assets and features you’ll have the use of besides just the property itself
● Outgoings, which are the additional expenses you’ll be expected to pay
Once you know how to understand your lease, you’ll be better prepared to understand whether or not the agreement truly suits your company’s needs.
The Best Way to Prepare for Signing a Commercial Lease
Although commercial leases can sometimes appear to be standard documents, they contain intricacies and some confusing details that might leave you unsure of exactly what you’re signing.
The best way to ensure you get the best possible commercial lease deal and protect your interests is to rely on an experienced tenant representative.
Tenant representatives do exactly that – they independently represent the tenants best interests through the search, negotiation and signing process, utilising the latest market research and extensive industry experience to get the best possible result for their clients.
Not only does this make sure the outcome is fair for the tenant, it also delivers peace of mind and the freedom to focus on their core business. A huge time and cost saving.
Broadway Property provide expert tenant representation services across Adelaide, Sydney, Melbourne and throughout Australia.
Contact us to book a free initial discussion with our team.
- Ben Heritage and Ryan Stewart, Directors, Broadway Property