If you are getting ready to negotiate a commercial lease, go in prepared by studying up on your leasing vocabulary. Here are a few words to be aware of, as listed in the article, “10 Commercial Real Estate Terms You Need to Know“:
Letter of Intent
An informal agreement between you and your landlord indicating that you are interested in beginning lease negotiations. Strongly consider consulting a lawyer before signing a letter of intent.
A clause to consider asking for if you are in the service industry and hoping to stay in the space for a long clause. This prohibits your landlord from leasing a neighboring space to a direct competitor of your business.
This clause allows the landlord to increase rent based on increase in the expenses they have to pay (i.e. taxes). This can take the form of adjustments based on the CPI, increased operating costs, or periodic rent increases.
Full Service Rent
Rent that covers all expenses for the first year, such as operating costs and taxes. You will still most likely be responsible for increases in operating costs over the base amount.
Before you enter lease negotiations, it is important to have a clear understanding of the language you will come across so you can negotiate the best deal for your business.