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Commercial lease agreements involve complex considerations

| Aug 13, 2015 | Commercial Real Estate |

Making business decisions is one of the primary responsibilities of a business owner. From how much product to order to deciding whether to enter into a partnership with a colleague, there is no shortage of decisions to be made. One important decision is the location of a business, and whether a business is starting out or expanding, deciding the terms of a commercial lease agreement can be critical for an Arizona business’s success.

Two essential terms to consider before leasing commercial real estate are the length of the lease period, as well as the rent. A one or two year lease may be a good starting point for a small business, with an option to renew should a business owner decide he or she wishes to remain in that location. Making sure the rent is a realistic rate for a business’s projected profits will help encourage the success of a business endeavor.

Before signing a lease, a lessee should be aware of any potential hidden expenses, such as utilities or maintenance fees that may be included. Another potentially large expense is the upkeep of the property. Often, in commercial leases, a tenant may be responsible for maintenance of plumbing or air conditioning systems, for example.

These are some general concerns that may seem obvious and immediate, but it can also be beneficial to think about how a business owner should prepare for the future. It is possible that a business owner will want to sublease an office building or warehouse, and to do so, it is generally necessary to have an allowance for this in the lease.

There are many issues that may arise in the leasing of commercial property. Therefore, it may be wise to seek guidance and assistance to better help you negotiate the terms of your lease and answer any questions that may arise during the process. This could help protect your rights and help ensure that you obtain favorable lease terms for your business.

Source:, “6 Tips for Negotiating a Commercial Property Lease without Getting Burned,” Caron Beesley, accessed August 7, 2015

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