What is a commercial lease?
A commercial lease is a tenancy of a business premises such as a shop, office, café, restaurant or industrial unit. Put another way, it’s a business rental and is probably the most common way of acquiring a property from which to operate a business.
Owners of commercial property range from large financial institutions holding investment portfolios of commercial properties to an individual who might own one or a few local business premises. Their goal in negotiating commercial leases will be the same: to achieve the best possible income stream by getting the best rent they can from a tenant who stays the course and pays the rent.
What is the process for taking a new lease of a business premises?
You will probably be dealing with a commercial agent who will have advised the landlord on rental values and basic commercial lease terms. Remember, the agent will be acting for the landlord and it’s the landlord’s interest he will be protecting by trying to get best possible basic lease terms agreed with a would be tenant.
It is crucial therefore that you understand and negotiate good commercial lease terms as these could have an effect on future success of your business, the extent of your liability and your ability to offload the commercial lease if needed. It also goes some way to help the next stage of the process: instructing your solicitor to deal with lease documentation.
Our next news item will help you in understanding basic commercial lease terms you should consider when negotiating for a commercial lease.
Lathams will be happy to advise, without charge, on these basic commercial lease terms.