Financing a new business or entity can be challenging, and business owners often look for easy ways to avoid significant upfront costs. One way that Connecticut businesses budget for their futures is through leasing commercial space for their fledgling organizations. Though rental costs can be high, they often do not come with the same upfront costs required to purchase commercial properties for businesses’ use.
When planning to rent a commercial property, thought and care must go into both the search and lease for the new space. This post will introduce some of the considerations that businesses may wish to make before committing to rent new commercial properties. Still, readers should know that not all of these elements will apply in all commercial lease situations.
Know what is included and what is not
A commercial lease applies to a specific place. If a business wishes to rent an office in a large complex, its lease will have to specify exactly what part of the complex will be left. Beyond the desired office space, the lease may also include rights for the business to use shared bathrooms, parking availability, and other considerations.
Finding the right space is important but knowing what a business can do with it is also significant to find out before entering a lease agreement. For example, a business may locate a potential site for its operations but may want to change the layout or structure to make it work. A lease agreement may limit what changes a tenant can make to its space under the contract terms.
Duration, costs, and utilities
Like residential leases, commercial leases are usually executed for specific periods of time. Many leases last for a year, with the option to extend the lease period by the parties.
Over the course of a lease term, the parties must agree to the cost the tenant will pay for rent and if their rent will increase at any point in the lease term. Their lease should also include information on their liability for utilities and other costs shared by the landlord and other tenants.
A real estate attorney can work with their commercial lease client to find a good spot for their business and a strong lease agreement to protect their interests. Readers with commercial property and lease questions are encouraged to seek legal help from knowledgeable professionals.