Signing onto a commercial lease is likely one of, if not the, biggest financial expense and investment you will place into your business. Not surprisingly, along with that steep measure of importance comes a lot of stress and worry. How do you read through a commercial lease and understand it properly? How do you know you are ready for a lease in the first place?
Here are some things to keep in mind before signing your first commercial lease to help better ensure you set your business up for success.
Major differences from private leases
It is important to understand the difference between commercial leases and private or personal leases, and Forbes recently published a great breakdown. Basically, you should start by knowing what you want out of the lease. After all, unlike a home, you will not live on this property. You will use it for business purposes, so you will have certain restraints placed on things like noise allowance, times of use and more.
Go into a lease knowing several foundational things, such as your hours of operation, how long you want the lease to last and whether you want the option to renew at the end of it. Keep other facets of the property in mind as well, such as whether or not you have a parking lot.
Next, check out subleasing options. This is often quicker and less complex than a regular lease. It involves renting out the space of a renter who cannot end the lease yet but no longer needs the space. You can get more flexible lease times this way, along with potentially getting discounts on price as well. You may even get extras like a phone line or office furniture. Be sure to discuss it in depth with the sublessor.