We recently blogged about various considerations a business owner must account for prior to signing a commercial lease. However, commercial lease transactions are complicated, and books can be written (and have) on all of the ways a business must protect itself when signing a commercial lease. Below are a few more important items to consider.
Does the lease include a grace period? Not every month will be a good one, financially speaking. Make sure that the lease does not allow the property owner to hold the tenant in default right away. A grace period could provide the opportunity to make up for any shortcomings in the rent.
What happens if the business outgrows the space? Adding new employees or expanding inventory could require a change in location. It would probably help either to include a provision in the lease that allows the tenant to move locations within the same space or to terminate the lease if certain conditions are met.
These considerations (and others) are important
Orange County business owners must take the time to properly negotiate and review a commercial lease. These questions and others need answers prior to taking on such an obligation. The future success of the business could depend on it since budgeting and limiting liabilities are crucial parts of any venture.