Taking on a commercial lease is a major decision that requires careful consideration. If your business ends up tied to a legally binding agreement that is not workable, there could be noticeable impacts on profitability.
As a result, it can be beneficial to prepare for commercial lease negotiations. Outlined below are three things to consider when negotiating a commercial lease.
Reflect on costs and budgets
It may be worthwhile to carefully consider the revenue of your business and compare it to the costs of prospective premises. A lease that consumes too much of your budget may not be suitable. Additionally, it might be worth contemplating how any future rent increases will impact your fiscal circumstances.
Think about the specific needs of your business
It may only be worth moving into a new space if your business needs can be serviced more efficiently. Often, business owners find it beneficial to create a list and prioritize the specific requirements of their operation. After this, it can be easier to visualize how a new space is going to improve the day-to-day running of your commercial activities.
Check termination conditions
It is possible that you may need an exit strategy from a commercial lease. There are numerous potential reasons for this, for example, you may be streamlining your business so the need for a large working area declines. Additionally, the opposite could be the case. Your business operation may expand within a short period, leaving a demand for larger premises. It can be helpful to examine subletting options as well as termination conditions before entering into any commercial real estate agreement.
Negotiating a commercial lease could be key to the success of your business. As a result, establishing preparatory strategies may be of assistance. As a business owner in Mississippi, it is also important to remember that you have legal rights.