You may believe that since your lease outlines all of the rights and responsibilities of the parties, that everything will be smooth sailing. After all, you spent a significant amount of time negotiating it, so everyone should live up to his or her obligations. Sadly, that is not always the case whether here in Orange County or elsewhere. A commercial tenant and a landlord do not always get along.
Accepting the first draft of a lease would probably be a mistake in most cases. Instead, a California commercial tenant may want to review the terms to make sure they are fair. One of the places where a budget for retail space could be busted is in the operating expenses, so they need particular attention.
Renting out commercial space can be a profitable venture for California entrepreneurs. As part of the leasing process, a landlord will need to choose the type of lease to use. When choosing a triple net lease, it would be a good idea to make sure that certain protections for the property owner are built into the agreement.
Signing a lease for a business space here in Orange County or anywhere else often requires more than just the renter's word for payment. Since the collapse of the real estate market, more property owners want more than just a lease to ensure they receive their money each month. A commercial tenant may need to be ready to provide a personal guarantee.
Making sure that all customers can access an Orange County brick and mortar location is often a priority for small business owners. This means making sure that the rental space is compliant with the Americans with Disabilities Act. If not, upgrades may need to be made in order to ensure that the building is up to code and that everyone may access the location. This brings up another question that a prospective commercial tenant may want to ask -- who is responsible for what when it comes to ADA compliance?
Every investor, owner and developer's desire is to fill a building and have it become profitable. For this reason, the hunt for commercial tenants often begins before a particular Orange County building is even completed, if it is a new development. The problem sometimes lies in finding that last commercial tenant to bring occupancy to 100 percent.
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.
You might not know what where it comes from, but you certainly recognize the ubiquitous sign:
A commercial tenant may spend a significant amount of time locating the perfect place to do business. The way the market here in Orange County and elsewhere in the country appears to be at this time, a prospective tenant may be able to negotiate more favorable terms when it comes to the lease. In fact, a landlord may agree to throw in some free perks as well.
Securing the right rental space here in Orange County can be a challenge. After what may be an exhaustive search, a commercial tenant must then begin the arduous and often unfamiliar process of negotiating the terms of a lease. More than likely, the landlord has done this numerous times, and probably already has built a library of forms for nearly every situation.