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Be sure that commercial lease is ready to sign

Starting a new business is an exciting time for many Orange County entrepreneurs. The urge to get started can sometimes be difficult to deny, but with so many matters to attend to before opening the doors, patience may be a virtue even if it is not appreciated. This may especially true when it comes to signing a commercial lease since taking the time to ensure that it is ready for a signature may take some time.

For instance, commercial tenants may want to thoroughly read the lease in order to ensure that they understand everything it contains. A lease is a contract, and once signed, the parties are bound by its terms. If something is not clear, it should be explained and dealt with, if needed, prior to executing the document. This includes any of the terminology included in it.

Opening a store? Find the right retail space for the goods

When looking for a location for a new store here in Orange County, a business owner may want to consider several factors. For instance, just because an area sees a lot of traffic does not necessarily make it a good location for a particular retail establishment. Before committing to sign a lease, it may be a good idea to look at factors that could have a significant impact on the success of a business.

For instance, it may help to look at the type of goods the business will sell. People who purchase specialty goods often have no issue with traveling a bit further to find them. Stores carrying these goods often do well in malls or near furniture stores, more expensive clothing stores and auto dealerships. These shopping stores carry goods that most people do not buy frequently, so they will want to compare prices, which is why these types of stores are often clustered together within a reasonable distance from each other.

Many developers are rethinking their commercial spaces

Without the ability to adapt, many projects here in California would more than likely falter. As the needs and desires of consumers change, so must the commercial and retail landscape. Many developers and landlords already know this, and are making adjustments to their visions in order to remain current and relevant in today's market.

This means renting out large amounts of retail space to companies that were previously slotted for retail or other commercial establishments other than office space. Companies like Spotify and Warner Music Group are moving their operations into spaces previously slotted for another type of tenant. Even developments that included office space in their plans may decide to increase the office space in order to bring in larger employers.

Public opinion is important to any development

California zoning boards may make decisions regarding whether a project is built in a commercial zone, an industrial zone or some other area. However, the public may also play a role in the decision making process when it comes to the placement of a development. Without the support of the surrounding community, a project may not move forward.

For instance, a health care network on the east coast attempted to build a methadone clinic in a neighborhood. The network planned to put in the clinic for months, but failed to consult with the members of the community until too late. The residents in the area where the clinic was to be feared that it would bring in crime and lower their property values.

Choosing the best location for a new business

Starting a new business venture is exciting, but might be complicated. There are many factors you have to consider when starting a company, including where it should be located.

Location is key in a successful business and you might not know what the best method is for choosing where to establish your business. Here are a few elements to consider about location when opening a new company.

Shopping centers are changing, and developers need to keep up

There is no denying that the face of retail has transformed in recent years. Shopping centers and malls here in California and elsewhere no longer survive under the old development models. Moving forward may require some innovative and out-of-the-box thinking.

Shopping centers and malls full of stores that mass market products no longer fit what consumers want. Instead, these places may benefit from changing over to consumer engagement spaces. The theory behind CESs is to pull people in and offer them access to their interests and needs.

How the letter of intent plays into a commercial lease

When renting property here in Orange County, you may begin the process by signing a letter of intent. This document outlines the basic terms between you and the property owner. You may want to make sure you thoroughly read and understand this document, because it could have implications for your commercial lease.

Most landlords consider the letter of intent the opening gambit in lease negotiations. Meanwhile, you may not think of this letter in the same way and believe that you can negotiate later to change its contents. Once the letter is signed, the landlord may not be willing to change any of its terms. Therefore, you may want to reconsider signing it until you are also satisfied with its terms.

Hidden CAMs in a commercial lease

Regardless of whether retail properties here in Orange County are at a premium, prospective tenants still want to find the best deal possible. No one should sign a commercial lease if the terms price a tenant out of the space. Everyone involved wants to make a profit, so a balance needs to be struck between what the property owner needs and what the tenant needs.

One area of the lease where negotiations often occur is common area maintenance costs such as janitorial services, trash removal and pest control, among other things. Property owners and tenants ordinarily share these costs, but there could be some question as to whether a tenant should be sharing certain costs with the owner. For instance, should a tenant share the cost of improvements to the entire property?

Franchisees are a special kind of commercial tenant

When some Orange County entrepreneurs consider starting a business, they look to franchises. Since much of the business is already established, it allows for certain guarantees when it comes to the success of the business. In some ways, this also makes a franchisee a special kind of commercial tenant.

This is because much of such a lease is often intertwined with the franchise. Even so, each party reserves the right to negotiate the best lease terms possible under the circumstances. Having an attorney who understands both commercial leases and the particulars of franchises may help.

Construction project contracts: change orders

So, you are contractor with a contract, the scope of work is defined, the price is set. You created an itemized list in your scope of work to help you get a better sense of the project’s cost and help you manage the expectations of your customer. Assuming you did this, at what point do change orders become excessive? How should they be dealt with?