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  • Writer's pictureTanya S Osensky

Negotiating a Commercial Lease? Don't Miss These Tips!

When a tenant is offered a commercial lease, it's crucial to negotiate terms that protect the business. Here are some key tips to keep in mind:

1️⃣ Take Advantage of Renewal Time

  • Use lease renewal as an opportunity to renegotiate terms.

  • Certain market conditions may favor tenants, making the lease more negotiable.

2️⃣ Things have changed? So should your Lease.

  • Regularly review and update your lease to reflect current business conditions.

  • Plan for unforeseen business disruptions by negotiating assignment, subletting and/or force majeure provisions.

3️⃣ Scrutinize Operating Expenses

  • Carefully analyze how operating expenses are calculated.

  • Negotiate limitations on pass-through expenses.

  • Secure audit rights and conduct audits to verify accuracy and avoid unnecessary costs.

4️⃣ Avoid Surprises

  • Thoroughly review all lease provisions, even seemingly "standard" ones.

  • Pay special attention to clauses like acceleration that could trigger immediate payments.

5️⃣ Seek guidance from both a commercial real estate agent and a business attorney

  • The agent can help find the best space and negotiate financial perks and savings upfront.

  • A business attorney will help reduce risk and save money down the road.

These tips are a great start to safeguard your interests and position your business for growth. Whenever I do a lease review, I follow a checklist that has over 200 items on it. Let's collaborate on your lease to ensure no important details slip through the cracks.

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