Compared to buying property, leasing has many advantages for business owners. First and foremost, it requires a lot less capital. However, this doesn’t mean a commercial lease agreement is easy.
Commercial lease agreements are usually much more complicated than residential leases. While a host of laws regulations protect residential tenants, there are few such protection for commercial lease holders. Commercial leases can also have much more variety in their terms, compared to residential leases, making every new lease negotiation unpredictable.
The flip side of this is that there is plenty of room for negotiation in commercial leases. Commercial leases can have longer or shorter terms than residential leases. Businesses may also have more room to negotiate how much, or how often they pay rent, and whether they can sublet the property. They may be able to negotiate different terms for a security deposit. Some business owners can get the property owner to agree to paying for, or partially paying for, improvements to the property. This last point can be extremely important for such expensive but necessary tasks as making an existing building compliant with the Americans With Disabilities Act.
With all this negotiation going on, it’s important to have help from a skilled business lawyer with experience in commercial real estate. Good business lawyers aren’t just skilled in courtroom argumentation; they also have skills in out of court negotiation. They can draft contracts that will protect their clients’ interests for years to come, and help avoid the possibility of expensive legal disputes later on.