Business owners and managers often shoulder the responsibility of ensuring everyday business needs are met. For many businesses, having a physical space to conduct operations or house their employees is necessary to conduct business. A business can either rent commercial real estate or purchase property. For those that rent, the business will likely need to agree to a lease with the landlord.
Just like in residential real estate leases, the lessee or tenant is required to oblige to stipulations as set by the landlord. Rent amounts, due by the month, specification about conducting business and other clauses will show up in a lease agreement. To break a lease earlier than the set term would require a breaking of that contract, which can result in consequences.
It’s not unusual for a would-be tenant to request revisions to a first lease initiated and shared via the landlord. These leases are often standard forms and can favor the landlord, not the tenant, in commercial real estate deals. Oftentimes, part of the negotiating is revising the lease to be more favorable to the tenant. A party may be able to negotiate the price of rent or other terms from the first draft of the lease by the time the finalized draft is signed and accepted by both parties.
Language in contracts and leases can be confusing. This is why it’s good to double-check to be sure you are signing a contract that works for your business. Getting the right information about your company’s rights under the applicable business law can help.