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Good Questions to Ask Before Signing a Commercial Real Estate Lease

Signing a commercial lease is a big decision that can affect your business for years to come. It's important to ask the right questions before signing on the dotted line to ensure that the lease meets your needs and protects your interests. Let's explore some of the most critical questions you should ask before signing a commercial lease.

What is the lease term and renewal options?

A commercial lease term typically ranges from three to ten years. Be sure to clarify the lease term and any renewal options. If you're unsure about your future plans or the business's growth trajectory, choose a shorter lease term with the option to renew.

Who is responsible for repairs and maintenance?

It's important to clarify who is responsible for maintenance, repairs, and any necessary upgrades. Some commercial leases require tenants to cover all maintenance and repair costs, while others place responsibility solely on the landlord.

What are the operating expenses?

The operating expenses of a commercial lease can significantly impact your business's bottom line. Be sure to clarify the details of all operating expenses, including common-area maintenance fees, property taxes, utilities, and other miscellaneous costs.

What is the early termination clause?

It's essential to understand the early termination clause of a commercial lease. In some cases, you may need to terminate the lease early due to changing business circumstances. Be sure to read the clause for any notice requirements and termination fees.

What is the parking situation?

Parking can be a significant factor for many businesses, particularly those that rely on customer traffic. Be sure to understand the parking arrangement for you and your employees, as well as for customers.

Understanding the language in a Commercial Real Estate Lease includes Signing a significant financial and operational decision for any business. Asking these critical questions before signing a lease will help you understand your rights and responsibilities and ensure that your lease meets your needs.

Using a qualified Commercial Real Estate Specialist to find and secure the best Lease for your plans is the best approach. Having their support in helping you understand the benefits and risks associated with the Lease agreement you are signing is invaluable! With the support of your Specialist, and their careful research and thorough attention to detail, you can feel confident in your lease agreement and focus on growing your business.

Take advantage of my years of experience as a Commercial Real Estate Specialist to help you in the search, selection, negotiations and the lease process.

Call me to talk about your plans!

Christy Westphal. 562-294-1838


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