Obtaining a commercial warehouse is an important step for many business owners, and getting the right lease for your warehouse can be critical to the success of your business. These tips for signing a commercial warehouse lease agreement will help you find the right property and the right agreement for your needs.
Get a Lawyer
It’s not enough to read the lease, although you should carefully read any lease that you sign. Find a lawyer experienced in commercial real estate who can help you understand the details of the lease. Your lawyer will be able to pull apart the lease and put it in terms that you understand, and he or she will be able to tell you if the lease you’re about to sign is in your business’s best interests.
Regardless of whether or not the lease you’re signing is a standard lease, all clauses of the lease are negotiable. It’s especially important to negotiate if you’re signing a long-term lease. Remember, long-term leases lock you into a binding agreement for many years. This involves a certain amount of risk for you as a business owner, while it ensures a certain amount of security for the property owner.
This should give you some room for negotiating more favorable terms. Speak with your lawyer about the terms that would be best for your business, and consider building in a clause that allows you to sublet the space, should your business plans change in the next 5 or 10 years.
Note the Maintenance Agreement
Commercial leases differ significantly from residential leases in that not all commercial property leases automatically require the property owner to cover the cost of repairs and maintenance. Some leases require the tenant to pay for all maintenance, while other leases require the tenant to pay for maintenance only on certain systems (such as heating or cooling) on the property. Know what your lease is requiring of you before signing.
Know What the Terms Are If You Default
Although you may not intend to default on your lease, sometimes things don’t go as business owners plan. Pay careful attention to the terms of your lease with regards to a default. If your business plan is particularly uncertain, you may want to negotiate the way a default would be handled to better suit your interests.
Most important is to remain in constant contact with your attorney and to listen to the legal advice given to you at every step of the way.Read More