One of the most important steps you may take as a Michigan small business owner is finding the right commercial space for your company. It can be difficult to find the right space that you can afford, and upon finding it, you may be anxious to move forward as quickly as possible. However, it is smart to carefully review your contract before you sign.
Like other types of legal contracts, the terms of a commercial lease agreement are negotiable. This means you may be able to secure terms that are most beneficial for you and reduce the chance of issues in the future. If presented with a contract to sign or in negotiations with the landlord, it is in your interests to carefully review all terms and conditions.
Attention to detail
In a commercial lease, it pays to be very careful with details. Once you sign, the terms that you agree to will affect your business for a long time, and it is prudent to be cautious. There is no one-size-fits-all commercial lease formula, but there are certain things you want to make sure your lease outlines in detail, including the following:
- The amount of rent, rent increases in the future and what the rent amount includes
- Which party is responsible for making improvements to the space and who pays for it
- How you can use the space, whether you can sublet it and what happens if you terminate the lease early
These are just a few of the things you may want to make sure are in your lease. However, every business is different, and you have the right to pursue terms that will benefit your company for years to come. It may also be possible to negotiate terms that are specific and important to the unique nature of your company operations.
The future well-being of your business
When you sign a commercial lease, it is crucial for the well-being of your business that you are not signing an agreement that limits your growth or exposes you to legal or financial risk down the road. Many business owners find it beneficial to have a real estate attorney review a contract before signing or assist with the negotiating process.
If you need to rent space, it may be helpful to first learn more about commercial leases and how your business can lay the foundation for a strong and prosperous future.