Leasing commercial space is an important step for your business. Before signing, make sure you fully understand what you are agreeing to. A commercial lease is a contract that can affect your establishment for years. The terms can increase costs, limit your options or cause legal problems. This is why you need to carefully review and understand all terms of your lease before moving forward.
Why your lease deserves careful attention
A commercial lease determines how much you will pay, what you can do with the space and what happens if problems arise. If you do not review the details or assume everything is standard, you may end up with a deal that harms your business. Reviewing the lease can help you protect your business and avoid surprises.
Key clauses you should never ignore
Some lease provisions carry significant risks and ignoring them can cause costly problems. Pay attention to these important clauses:
- Rent increases: Many leases require yearly rent increases based on a fixed percentage or inflation. Know the amount and timing of these increases.
- Repairs and maintenance: Some leases require tenants to cover building repairs, including major systems such as heating, cooling, and the roof. Responsibilities should be clearly defined.
- Use and competition: Your lease may restrict the type of business you can operate. You may request an exclusivity clause to prevent competitors from operating in the same building.
- Personal guarantees: Signing a personal guarantee can put your assets at risk. Whenever possible, try to limit or remove this obligation.
Each clause can lead to costs or legal issues. Many landlords are willing to negotiate these terms.
Why reviewing a commercial lease matters
Commercial leases offer more flexibility than residential ones but have fewer legal protections for tenants. Unlike residential agreements, commercial leases are often tailored to the property and negotiated terms. This means the landlord may include terms that heavily favor their interests. This makes it important to review your lease before signing.
In Wayne, Oakland, and Macomb Counties, lease terms vary based on property, location, and landlord. A local attorney can help you understand typical terms and identify unusual provisions.
Why legal review matters
You wouldn’t sign a business contract without knowing the risks; a lease is no different. Consulting a lawyer can help you manage complex lease terms and protect your business interests before you sign. An attorney can also guide you in understanding the terms of the lease, find potential loopholes and negotiate changes that protect you.
Make your lease work for you
A commercial lease is a contract that affects your business’s success and financial stability. Reviewing all terms carefully, understanding your obligations and seeking legal advice can protect you from risks and unexpected costs. Before signing, confirm if your lease supports your business goals and protects your interests.