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What to know before signing a commercial lease 

On Behalf of | Jan 21, 2025 | Commercial Real Estate

Despite the rise in online trading, most businesses still require at least one premises. One of the most efficient ways to obtain business premises is by entering into a commercial lease. This allows you to use the building for a fee for an agreed period. 

Nonetheless, a commercial lease must be thoroughly checked before signing. Here are some key questions you may want to ask.

How much will it cost? 

The rent is only one aspect of the cost of a commercial lease. It’s also important to consider extra fees, insurance, taxes, utility bills and common area maintenance fees. Make sure that your commercial lease is good value before committing. 

How flexible is it? 

Your business may expand quickly and could outgrow the property. It’s important to consider whether or not the lease can be terminated early and how much the penalties for this are. At the same time, you may have found the perfect spot and want a long-term deal. Does the lease allow for renegotiation? 

Who covers repairs and maintenance?

All properties require repairs and maintenance at some point, and the lease must clarify who is responsible for what. For instance, the tenant may be responsible for routine wear and tear while the landlord is responsible for major repairs like plumbing and electrical issues.

Are there restrictions on property use? 

One thing that business owners need to consider is zoning laws and restrictions. Some zones only allow businesses to operate within certain timeframes. Other zoning restrictions may prevent businesses from making noise or selling alcohol. It’s important to familiarize yourself with the zoning laws in the relevant area before committing to a commercial lease. 

A commercial lease can be beneficial for all parties. To make sure you enter into an agreement that works for you, it may help to seek legal guidance.