You may be accustomed to leasing the property from your prior or current experience renting a house or an apartment, but a commercial lease is much more involved because of its legal implications as a business-to-business agreement. One of the major benefits of leasing is that businesses do not need to have as much capital as compared to if they were buying a property outright.
A commercial lease is much more negotiable than being residential leases. Terms may vary according to what is necessary or required per each party, and the rights and responsibilities will be outlined within the agreement.
What to Expect in a Commercial Lease Agreement
When renting commercial property, the following items will be part of what you and the landlord legally agree to in the lease:
Cost to Rent
The square footage will determine the amount of rent the landlord will require. Keep in mind that the landlord’s calculation of square footage may also include other areas of the building, such as elevators, staircases, attics, and porches.
Be sure to ask the landlord how much of the square footage is actually feasible as usable space for the business. Also, ask about how many parking spots will be available for your clients.
Other costs may also be calculated into the monthly rent. The landlord may be willing to negotiate regarding property taxes, insurance, repairs, and utilities.
Commercial lease agreements usually include annual rental increases. The percentage-based increase may be negotiated for a leveling-off or cap. This will assist the renter in avoiding exorbitant costs down the road that the business may not be able to support.
Like residential leases, the terms of a security deposit are also outlined in a commercial lease agreement. The terms will state the amount of the security deposit, the conditions by which it can be returned, and when.
Extended Terms
Commercial lease agreements are usually more long-term than are residential leases. However, the landlord may agree to a short-term lease with an option to renew the lease. Note that this option may cause the landlord to raise the rent if the lease is renewed, whereas signing a long-term lease locks you into a lower monthly cost.
Legal Protections and Responsibilities
There are fewer legal protections associated with a commercial lease agreement as compared to its residential counterpart, and this is because consumer laws – which are designed to protect individuals – do not apply to businesses. The renter is responsible for paying everything that is agreed to in the lease, which is why any negotiation is so important at the outset. It will be much more difficult to negotiate the terms once the lease is signed.
New Medical Office Building in Naples
If you are a healthcare professional who is looking to open a new medical office in Naples, take a look at Executive Medical Center – which is now under construction and is getting prepared for tenants. Ours is a state-of-the-art medical office building that’s already set to have an outpatient surgery center and an MRI center, which will be ultra-convenient for the patients of all of our tenants.
We have spectacular offices available for medical specialists of all kinds, and we are located in a prime Naples location: on Executive Drive near the intersection of Immokalee Road and Valewood Drive.
