Delev & Associates, LLC

What to consider in commercial real estate lease discussions

Commercial real estate transactions can be very complicated, but they are also all but inevitable for business owners in Ohio who are looking to build or expand a business. For example, business owners often need to negotiate the terms of a lease for commercial space with landlords.

Considering the fact that the resulting contracts can be in place for quite some time and they may have a significant impact on how a business operates, it is important for business owners to take these transactions seriously. 

Every commercial lease agreement can be different and can require substantial negotiation before it is acceptable to both parties. Landlords and business owners alike want to protect themselves and their bottom lines, which often requires people to compromise and weigh their options. Doing this without legal representation can prove to be quite difficult and can lead to further complications.

There are a number of different factors that are typically addressed in a commercial real estate lease. Some of those factors include:

  • Length of the lease
  • Payment
  • Options for subleasing
  • How the space will be used
  • Any improvements or additions that must be made by a landlord

These and other factors will need to be detailed in the lease and are typically very negotiable. For instance, a business owner may agree to higher payments in order to secure subleasing permissions. A landlord can be encouraged to make certain changes to the property within a specific period of time if a business owner agrees to enter the lease as soon as possible.

The process of making concessions and demands can be very complex and the stakes of these agreements can be high. A person without adequate commercial real estate and legal knowledge can quickly get overwhelmed during these discussions. This is why it can be beneficial to consult an attorney before negotiating or agreeing to a lease for commercial real estate. Not only can legal representation help business owners avoid costly mistakes, but it can also help them enforce the conditions set in a lease or contract.

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