The process of leasing a commercial property involves much more than just finding the right location.
One crucial step is negotiating the lease terms. A well-negotiated lease can provide stability, predictability and savings.
Whether you’re a tenant or a landlord, understanding the dynamics and content of the property lease can ensure that the leasing process aligns with your commercial objectives.
A commercial property lease agreement is a legally binding contract between a landlord and a tenant. It dictates terms under which the tenant can use the commercial property for business purposes. The same basic principles will apply regardless of the size and location of the property, be it a retail shop, office space or warehouse.
Here are some of the most important points to consider when negotiating a new lease:
After negotiating on key terms, the agent will draw up a “Heads of Terms,” which will set out the main content of the lease. While this isn’t strictly legally binding, it’s important to not sign anything until both parties are happy to proceed.
Negotiating a commercial property lease can be complex and should not be rushed. A well-negotiated lease fosters a strong foundation for a long and fruitful business relationship.
By doing your research, prioritising your needs, and seeking professional guidance, you will be taking an important step towards making sure that the commercial property/lease serves as an asset, not a burden.