As a business owner, you understand the difficulty of finding space that is affordable and suited for the needs of your business. Once you find a commercial space that will work, you may be tempted to sign on the dotted line and move forward as quickly as possible. In reality, that may not be the most prudent course of action.
Commercial leases differ from residential leases in many ways, and it’s in your interests to learn how you can protect your company at every step. There are specific things you can negotiate, and you will want to fully understand the limits of commercial lease contracts and the protections that this type of contract can offer your New York small business.
What you need to know about a commercial lease
If you rent a residential property, you have probably signed a lease at some point. In these situations, the landlord gives you a lease contract to review and sign. The terms are rarely negotiable. However, that is not the case with commercial leases. Some of the main things that make these types of contracts different include:
- Commercial leases can be good for multiple years, whereas residential leases are typically only good for one year at a time.
- Commercial leases are likely to have varied terms to suit the needs of the individual business, but most residential lease contracts are not.
- Commercial leases do not offer as many legal protections to the signee as residential leases typically do.
- Commercial lease terms are likely negotiable, but a residential lease is probably not.
Before you sign a commercial lease, it’s in your interests to carefully review all terms and ensure that you are not agreeing to terms that will actually expose you to the potential for legal complications and possible financial loss in the future. You may also want to negotiate for terms that will work well for your business long-term.
Guidance in real estate matters
Before you make any important commercial real estate decisions or sign a lease, you will find it beneficial to seek the guidance of an attorney who can help you make smart choices and move forward with plans that will benefit for your small business for years to come. Whether you need assistance with contract review, term negotiation or preventing problems, you will find significant benefit in seeking an evaluation of your case with an experienced legal advocate.