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negotiating commercial lease

Things To Lookout For While Negotiating a Commercial Lease

Signing a commercial lease is a huge step for your business and without much experience in doing so, it can be an overwhelming task. Our team thought it would be most helpful to share a few key tips for tenants to successfully negotiate a new commercial lease. Read on to hear some of our team’s most insightful tips and tricks.

Think about what you NEED

Take some time to think about this as realistically as possible. What are your needs today as well as into the future? What are your limits around pricing? This should always be the first step in looking for a new commercial space. The three main things we suggest determining before you begin negotiations are the space your business will need now and as it expands, your budget, and location. These three things are often a trade off of each other. It is very difficult to get a prime location near lots of amenities but also keep a low cost with abundant parking. It is important to determine which items are a must have and which are nice to have. 

Let’s get familiar

Be sure to familiarize yourself with the different kinds of leases. For example, there are major differences in expenses when comparing Net, Triple Net, Full Service – the list goes on. Do not forget to include incidental expenses when coming up with your budget, these expenses often sneak up on tenants and can make or break the business! Keep things like utilities and janitorial costs in mind when signing a lease. Most leases, even full service, may not cover all utilities or janitorial service to your space. Be sure to ask for a full breakdown of costs. 

Research, Research, Research!

Looking into the finer details of the property is always a good idea. For example, things like landlord reputation, parking, foot traffic, possible competitors are all things you should look into.

It can’t hurt to ask

Do not be afraid to ask the landlord about tenant improvements (TI) – these may become an option when the space has been vacant for too long. Hey! You just might find yourself with 2-3 months free rent! Make sure you are comfortable with all portions of the lease and if not, be sure to ask for modifications like the ability to sublease, including a competitor clause, leasehold improvements, etc.

Last but not least

Always get a professional opinion. It may all look fine to you, but always ask another (professional) to take a look at the agreements. A lawyer is especially helpful in reading the fine print of a lease or a local real estate broker can give you advice on what deal terms they see in the market and with your particular landlord.  Either professional may be extremely helpful in pointing out hidden costs, negotiating lease terms, and more. These are all critical variables that you do not want to glaze over.   


Market Real Estate is always happy to be of service whether it is just a consultation or helping you find the next location for your business. Please feel free to reach out by email at or call us at 303-444-4888

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