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3 things for a commercial tenant to watch for in a lease

Unless you intend to purchase property for your new business here in Orange County, you will need to sign a lease for the space you need. Like any other commercial tenant, your lease will more than likely be about much more than just the rent and term of the lease. Below are three issues you may want to watch for when negotiating your lease.

First, some landlords attempt to retain the right to move your location as desired. You may want to make sure that your landlord is prohibited from doing this. After scouting out the perfect location, it could be detrimental to your business to move to another location.

Second, make sure that you do not incur an obligation to pay rent until your buildout is complete. Otherwise, you could find yourself obligated to pay rent when you cannot even occupy the space. Considering the costs associated with construction and starting a business, this output of money could cause you significant financial issues before you even see your first customer.

Third, take the time to negotiate your and your landlord's maintenance responsibilities. For instance, you may not want to be responsible for repairing or maintaining the HVAC system, especially in a multi-tenant facility. You may not be able to avoid paying for some maintenance and repair issues, but you may be able to limit your costs.

These are just three of the issues that require the attention of a commercial tenant when negotiating a lease. Making sure that you receive the best lease terms possible, you may need to work with a real estate attorney who understands the commercial rental market here in Orange County. With all of the work you do in order to give your business the best chance at success, it would be a shame for your lease terms to end up costing you more than they should.

Source:, "Top 10 Tips for Negotiating Your Lease", Accessed on Feb. 18, 2018

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