Let Geri Lyons Chase's experience work for you

Appropriate terms for a commercial lease agreement

On Behalf of | Feb 28, 2023 | Business Law

It can be complicated to locate commercial property that is within your budget and suitable for the goals of your business. When you locate a storefront, industrial building or other type of location that you believe will be the ideal choice for your Maryland company, you may want to move forward as quickly as possible in order to secure the location. However, before signing a commercial lease, you will benefit from giving the contract careful consideration, possibly negotiating terms that are more favorable for your business.

Commercial lease agreements are contracts that outline the rights and responsibilities of both the landlord and the occupant, which is your business. The terms of this contract should address the cost of rent and other details, including penalties for breaking the lease early and more. Like any other type of business contract, you have the right to seek terms that are practical, sustainable and satisfactory to all parties.

The details matter

The terms of your commercial lease should provide clarity and details regarding your responsibilities. Your landlord may have a premade lease agreement he or she presents to you, but before you sign, it is in your interests to ensure inclusion of the appropriate details and necessary terms. Some of the important details of any commercial lease include:

  • Rent — Not only do you need to know how much the rent will cost, but you also need to know what the rent covers. This could include utilities, renters’ insurance and more.
  • Duration — A lease is typically set for a specific amount of time, and your lease agreement should specify how long you are committing to rent the space.
  • Details — The lease agreement should also specify which party is responsible for maintaining the building, whether it is ADA compliant and if subleasing is possible.

Before you sign on the dotted line, you will need to understand all terms and carefully review details. If something critical is missing, you may seek to include terms that will protect your interests.

Negotiating for your future interests

The terms of your commercial lease could impact your business for years to come. You will benefit from having experienced guidance as you seek reasonable terms and draft a contract that will allow you to move forward with confidence. It may be helpful to start with an assessment of your case and explanation of the legal options available to you.