When considering options for commercial spaces that suit your business needs, it is also important to contemplate possible complications. It is preferable to uncover any potential problems before entering an agreement, rather than further down the line.
Often, negotiations over a commercial lease will run smoothly. However, on occasion, issues will arise that could potentially impact the requirements of your business. Outlined below are some important factors to consider before entering a commercial lease.
How will the space be used?
It may seem obvious, but it is important that all parties are fully aware of how the commercial space is going to be used. Real estate owners often have to consider how the new business will fit in with corporations that are already established in the area. Occasionally, there are some types of businesses that a commercial real estate owner will simply not sign their property over to.
What are the operating costs of the building?
Frequently, business operators absorb the entire cost of using the building. On the other hand, this is not always the case. It is not uncommon for businesses to share commercial properties, which in turn could mean they must share the operating costs of the setting. It is important to consider the financial impact that any operating costs could have on your business.
Who is responsible for maintenance?
Tennants and commercial real estate owners may have different ideas about who will take on the responsibility of maintenance throughout a lease. There are some business operators who may be keen to make changes and improve the environment for customers. However, other businesses may operate in a manner that involves fewer face-to-face interactions, making the aesthetics of the environment a lesser priority. Ironing out who is responsible for repairs early in the negotiation process could prevent commercial disputes at a later date.
Giving careful thought to these key issues before entering a commercial lease could be in your best interests. As a business owner in California, it is important to remember that you have legal rights.