What are some dos and don'ts related to commercial leases?

[Austindaqfac]

I was fortunate enough to start my business in the middle of the pandemic with a friend who already owned a piece of property in the heart of the city passed down from family. We are now looking for our second location, and I have had the worse luck with commercial agents. They seem so unmotivated and not very informative at all. It has left me to do my own research. What are some things to be sure to avoid or perks to be sure to add when negotiating a commercial lease?

[Donnie-M]

@Austindaqfac Commercial leases are something you really should look at with your attorney.  Big thing with commercial leases you will read are terms like triple net.  It should be clear if you pay for your own electric/water or is it provided, who is responsible for maintenance (I run food service, and one lease we are responsible for all our own plumbing and electrical even if it is part of the space), how long is the lease and does it renew.

Another thing to look at is if you go into a shared space say a strip mall, will the owner give you exclusive rights to be the only insurance agency or deli/food shop or salon, etc.   Last thing you want is to open a taco shop and a taco shop locates next to you.

You can ask for T&I which is a term associated with tenant improvements where the landlord will give you so much money to fix up the space or fix it up for your business as part of your lease.

Lastly, make sure you can actually put your business in the space.  Restaurants, does it have a grease trap and can you get one permitted for the location.  

Hope this helps.

Donnie-M