Questions to Ask Before Signing a Commercial Real Estate Lease
When you rent office space, there are many things to consider and several key questions to ask before you sign the commercial lease. Each lease agreement is different and you’ll want your commercial Realtor to help you negotiate lease terms that could protect you in the future.
How long do I plan to be in the space?
Estimate how long your business can operate effectively in the space you want to lease. Do you need a short-term or long-term lease? Do you want specific renewal option periods?
Can I get out of the lease?
What happens if you need to leave before the lease period ends? What penalties will apply? Will you lose your security deposit? Will you be sued? You need to be sure about the lease period before signing the lease.
What other tenants occupy the space?
Ask the landlord about the other tenants in the building to confirm that your business type compliments the group. Give careful consideration before leasing space in a building where the majority of the tenants’ corporate cultures are radically different from your company’s culture.
Does the building have on-site management?
If the landlord does not have management on-site, ask about how quickly assistance will be provided and how this will work. Smaller buildings do not usually have on-site management.
What build-out assistance and/or amenities will the landlord provide?
Landlords frequently remodel spaces, provide moving allowances, or offer additional covered parking spaces as an incentive to a new tenant. Ask the landlord about rent increases, maintenance, insurance and taxes.
Do you have the right to sublease the space?
You may reach a point that requires you to leave or you may want to lease some of the space to another individual. Some leases do not provide this sublease opportunity.