With a growing company, you and your fellow executives determined that it was time to find a new and much more expanded office space. You take your time with your research, scouting out a handful of properties as potential headquarters.
Along the way, you must give extra attention to the lease of this commercial space. In many situations, the terms of the lease will have a great influence on your decision to sign a contract. Are these favorable terms? Or will an albatross burden your company?
Careful analysis necessary
When negotiating a lease, you have the advantage as long as you do your homework. A lease is a legal contract that needs a thorough analysis.
Reviewing the details within the lease will provide you with a firmer understanding. Will you pay the property taxes? Will utilities and insurance be your company’s responsibility?
Make sure the lease is up to date
Here are some important details that require your scrutiny when considering whether to sign a commercial lease:
- The lease agreement must meet municipal, state and federal guidelines.
- An up-to-date lease agreement is a necessity. You do not want any property-related surprises such as the need for significant repairs.
- Understand the state’s zoning requirements and how you may use the property.
- Create a building improvements list that the landlord must complete before your company will move into this space.
- Pay close attention to the lease’s length. Typically, start-up businesses prefer short-term leases.
These represent some of the things that need scrutiny when seeking commercial property.
Search, inspect and review
Do not let the momentum of your successful business meet with an obstacle such as an unfavorable lease. Search the market for the right properties, inspect them and review the lease agreement. A skilled attorney may provide guidance, too.