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Questions to ask before signing a commercial lease

| Feb 22, 2018 | Firm News

As a California business owner, signing a commercial lease is an important step that could be important for your business. This is a major legal and financial decision, and there are many things you may need to consider as you secure a storefront or operational space for your company.

With the high cost of leasing space, you would be wise to seek guidance as you move forward with this crucial step. It is prudent to carefully review all lease documents in order to protect yourself from unexpected rules, restrictions and financial liability. Acting with prudence and caution before signing can help you avoid complications and unexpected costs in the future.

Useful questions before you sign a commercial lease

Before signing a commercial lease, there are various questions you can ask that will help you avoid issues in the future and ensure you understand the terms of your lease agreement. Some of these questions include:

  • What will happen in the event of a worst case scenario? It can be helpful if your lease agreement includes flexible terms in case of an unexpected scenario, such as bankruptcy or a buyout.
  • How long will you need the space? It is smart to think well into the future when negotiating the terms and length of your lease agreement.
  • Do you have plans for expansion in the near future? Expanding your business could be great for your company, but it is important to consider how the leased space will work for you during periods of growth.
  • What type of lease is best for your business? There are different types of commercial leases, and they could mean different things for your company. It is smart to know what you are signing.

If you are able to negotiate the terms of your commercial lease, it would be smart to include terms that will allow for contingencies and setbacks. Owning a business is unpredictable, and it can be helpful to ensure that your lease includes flexible terms.

What do you need to protect your company?

Lease disputes can be both complex and costly for your company. Avoiding lease-related complications can be as simple as carefully reviewing the terms of your contract before you sign or negotiating beneficial and practical terms.

If you are considering leasing space for your business, you may find it beneficial to seek a complete evaluation of your options in order to better understand how to shield your interests as you move forward with this process.