Before you sign that lease, read this. It could save your business.
Leasing space is a big move for any business. But too many owners sign commercial leases without understanding what they’re agreeing to.
Here are key things to look out for:
1. Understand the Lease Type
There are different types: Gross, Net, and Modified Gross. Each affects how much you pay monthly. Ask what’s included in your rent (utilities, maintenance, property tax, etc.).
2. Watch for Hidden Costs
Some leases pass on maintenance, repairs, and insurance to you. These costs add up fast. Always ask for a breakdown of all potential charges.
3. Negotiate the Terms
Leases are negotiable! You can ask for lower rent, free rent months, or a cap on future rent increases. Don’t accept the first offer.
4. Know Your Exit Strategy
Can you break the lease early? Can you sublease the space? You need a backup plan if things don’t go as expected.
5. Check for Zoning Issues
Make sure your business is allowed to operate in that space. Zoning laws vary, and breaking them can shut your doors.
Before signing anything, have a real estate lawyer review your lease. It’s a small investment that can protect your business for years to come.