Nicole, Here Are Your Articles for Monday, February 07, 2022
Is this email not displaying correctly?
View it in your browser .
Our Website Contact Us About Us Services Tutorials Acumatica
Share Save

What To Know Before Signing a Business Lease

 

Looking for premises for your business? Don't be in a hurry! A business lease requires some research. You need to make sure the space works for you. Before you're ready to sign a lease, consider the following:

  • How large or small an area do you need?
  • Do you need a high-traffic location?
  • Do you need premises with industrial space?
  • Do you want an anchor store nearby?
  • What should the space include? For example, do you need conference rooms or a kitchen? Will employees, clients and business partners expect windows with a view?

Do your homework

Check online to have a point of reference for the typical cost of leasing commercial space in the area you're considering. Before you hire a broker, ask:

  • Do you specialize in a geographic area or a specific type of commercial space?
  • How much experience do you have with small businesses? How much do you have with businesses in my industry?
  • How many other clients do you work with at a time?
  • What resources do you have for market research?
  • What strategy will you use to find me a space?

When meeting the commercial agent, ask:

  • What's the minimum lease requirement? One year is typical, but some require two or three. In fact, don't be surprised if you're asked to sign a 10-year lease.
  • Are utilities included? Usually, they're not.
  • Will I have to pay for trash pickup, cleaning services, snow plowing or any other common area fees?
  • Will the landlord pay for such changes in the space as layout, paint, new carpet or special electrical needs? Sometimes landlords will amortize costs over the lease term.
  • Can the landlord insist on such changes as soundproofing for a restaurant or installing ventilation for a nail salon?
  • Do I need a business license, a certificate of occupancy or a building permit?
  • What are the traffic numbers? Ask about car counts and community demographics.
  • Is there enough parking?
  • Is there room for expansion or the option to move into a larger space in the same building?
  • What if a fire or flood renders my space unusable?
  • What happens if changes to the building restrict access to or visibility of my space?

Review the terms carefully

Confirm all the terms, especially clauses about the rent, security deposit, terms of the lease and rules regarding use of the space, which you want to be as broad as possible. The fine print is very important; it's very common for a business tenant to pay at least a portion of the property taxes. Request exclusion in the building — if you're going to be running a brewery, you don't want another brewery to rent space in the same building.

Watch out for personal risk exposure — a clause saying that you're personally responsible for aspects of the lease even if your business defaults. Work with legal counsel to negotiate this aspect of the contract. You want only your business entity to take on risk when you sign a lease.

This is just the beginning — there will no doubt be other issues. Be sure to work with a real estate attorney and other professionals as necessary.

 
Share Save

Your Comments

Siegel Solutions Inc
Siegel Solutions Inc
(781) 487-7000
info@siegelsolutions.com
144 Gould Street Suite 205
Needham, MA 02494
Friend Me on Facebook
Follow Me on Twitter
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to: ncormierdesign@gmail.com

Mailing address: 144 Gould Street Suite 205, Needham, MA 02494