If you are a new business, it is particularly important to really consider ways to protect yourself when you enter a commercial real estate lease. There are several different clauses you can build into your lease to do this, and here are three of the most common ones, as outlined in the article “How to Find & Lease Retail Space”:
#1 Exclusivity Clause
This clause prohibits the landlord from leasing a nearby space in the property to one of your direct competitors.
#2 Co-Tenancy Clause
This clause protects your business in the event that an anchor tenant leaves the property. An anchor tenant is a business that brings in a lot of customer traffic for other businesses in the property. If an anchor tenant leaves, the co-tenancy clause requires the landlord to replace them within a certain period of time, or else allow you to break your lease without penalty.
#3 Sublease Clause
In the event that your business has to leave the space before your lease term is up, the sublease clause allows you to rent the space to another business, which protects you from penalties associated with breaking a lease.
Think about the best ways to protect your business in various situations as you are negotiating your lease, and consider consulting a broker or an attorney for more advice on negotiating for these kinds of clauses.