If you are a business owner, there is a pretty good chance that you will have to deal with a commercial lease at some point during your time with that business. Though all leases are different and need to be carefully reviewed, there are some common core issues in commercial leases, and it is helpful to have a basic understanding of these issues. Here are just a few explanations of some important issues addressed in commercial leases:
1. What space are you renting? Your commercial lease should clearly identify the space that you will be leasing, which is called the “demised premises.” Usually leases include a street address and a site plan with the demise premises’ square footage. Be sure to check that your lease clearly defines the demised premises and that it is the same as the demised premises that you were expecting to rent. Make sure the space has adequate parking spaces and sign rights to let you operate your business.
2. What are you allowed to do in your demised premises? Your lease will most likely tell you what you cannot and cannot do in the space. Office leases usually just state that the space can be used for general office use, and nothing else. Retail spaces might have more specific guidelines. You should also check to see if your lease contains an “exclusive,” which prevents competing businesses from operating in the same building(s).
Check back for more issues to be aware of!