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What to look for as a commercial tenant when signing a lease

On Behalf of | Nov 20, 2017 | Landlord / Tenant |

Many businesses here in Orange County rent the space in which they conduct their business. As a commercial tenant, many of them are presented with boiler plate lease documents that more than likely favor the landlord. What they need to know is that they can negotiate better terms.

The first lease document presented to a potential commercial tenant may be viewed as an opening to negotiations. After reviewing the initial documents, a counteroffer could be constructed. Often, landlords will add in some “wiggle room” when it comes to the rental price a tenant is expected to pay for the space. Knowing this, it is acceptable to offer a lower price.

Any counteroffer needs to be presented in writing. This helps avoid any confusion. Making every detail as clear as possible could help avoid the final product from having discrepancies that may require additional negotiations.

A written counteroffer may also include reasoning for certain changes to the lease. If the property is subject to numerous offers, the explanations could sway the landlord depending on the circumstances. Some of the issues you may address in your counteroffer include the lease price, the condition you expect the property to be in and the date you wish to take occupancy.

In order to bolster a the position of a commercial tenant when negotiating a lease, it may be helpful to involve an attorney here in Orange County who regularly handles these matters. Location is often key to the success of any business, but paying too much for that “leg up” could keep a business from reaching its full potential. Having an advocate in a business’s corner who can help negotiate more reasonable lease terms could make the difference in getting the space at an acceptable price and acceptable terms.

Source:, “How to Negotiate Commercial Leases That Favor Tenants“, Lahle Wolfe, Accessed on Nov. 17, 2017