Do you feel exhilarated by the prospect of leasing the first space for your new business? Enthusiasm can take you far, but remember, not all leases protect the interests of both parties.
When you find the ideal space, its owner may hand you prepared lease documents but never assume you must accept the provisions. Commercial property owners or managers expect to negotiate the terms of a lease, whether they say so in advance or never bring it up.
These practical tips can help when the time comes to discuss the terms of your first commercial lease.
1. Know your budget
Before you begin negotiations, establish a realistic budget accounting for rent, utilities, maintenance and potential expense increases. Knowing your financial limits can empower you to step away from an unfavorable deal and seek a space elsewhere.
2. Learn the art of compromise
Negotiation is a dance, not a solo performance. Prepare a list of desired terms, but be ready to compromise if you want the same consideration. A willingness to concede on less crucial aspects might incentivize the landlord to budge on points that matter to you.
3. Use knowledge as a weapon
Research Arizona’s commercial lease laws and familiarize yourself with local market trends. The more you know about average rental rates and lease clauses, the better prepared you are to argue for equitable tenancy terms.
Dealing with binding legal agreements can be tricky, especially for new business owners. Since a commercial lease is a legal contract, consider seeking guidance from someone experienced in both business and real estate law.
A representative can review your contracts, identify possible pitfalls and ensure they align with your business needs and goals.
