Category Archives: Commercial Real Estate Process

How do You Know if You are Ready to Sign a Commercial Lease?

Signing any lease requires a lot of preparation and research. Signing a commercial lease takes even more care as the terms are usually more complex and the duration is for a period of at least five years. If you are looking for commercial office space in LA, it’s necessary to determine your specific needs. Before signing any documents, be sure you have addressed the following aspects of your intended venture into a commercial lease.


The duration of your contract is important because breaking a commercial lease can be very expensive. If you are going to get locked into something for five or more years, be sure to do a full analysis of the business budget and projections. If your business is more established, negotiating a longer-term and lower price can be more financially beneficial long term.


Researching the location, the amount of foot traffic, and convenience for clients is essential for your business’s success. Other things to look out for regarding the commercial office location include parking, business competitors, and your building neighbors.

Terms of Breaking the Lease

In the case that your business does not do well or some worst-case scenario happens, know the terms of breaking your lease. Breaking a lease can be expensive so you’ll need to understand how, when, and how much it will cost you to get out of it. Be sure to negotiate these terms before you sign the lease. You may even be able to lock in a grace period that gives you a certain amount of time to stay locked in or get out early.

Non-Assignment Clause

Be sure to discuss with the landlord if you are able to sublease or assign your lease. In the case that you grow out of the space and need to expand it’s important to know if you can transfer your rights and liabilities to a third party to essentially take over your lease. Many contracts will have a non-assignment clause which will restrict you from being able to sublease or assign the contract.

Research the Landlord and Building Owner

Find out as much as you can about your landlord and the building owner. Getting into a long-term contract with someone who doesn’t have a good reputation can pose major problems in the future. It’s important to look up any information through public records on the building owner and their business. This ensures they will be a good future partner for your business needs.

Zoning Laws

Depending on what kind of business you are running you’ll need to make sure you know the areas zoning laws. Be careful not to rely on your landlord’s word or any permission from the building owner as complying with zoning laws is necessary and cannot be waived.


Know that nearly everything in a lease is negotiable. If you don’t like a certain term, be sure to talk with your landlord before signing. Something may be worked out. If you feel pressured at all, it might not be the right fit. Take your time to find a property that’s right for you on the specific terms that are right for you.

If you are still concerned about the terms or conditions of a commercial lease you may want to talk with a lawyer. They can assist in the legalities of the terms and ensure that everything has been adequately covered in your favor.

If you are looking for a commercial medical space in the southern California area, check out Boulevard Medical Properties. Boulevard Medical Properties has properties for lease in Northridge, Brentwood, Culver City, and Downtown Los Angeles. We are focused on finding our clients the best property for their business.

Boulevard Medical Properties take the stress out of the whole process. Choosing to find a commercial property for your medical practice can be difficult but we can help elevate your business to the next level.

How Does Commercial Escrow Work?

In the process of purchasing or leasing a commercial property? You may have come across the term “escrow”. Escrow is a contractual agreement where a third party handles or holds the money for a property until all terms on both sides are met. Once all the details are settled, the third party can then distribute the money as set out and complete the transaction. Purchasing a commercial property through escrow is viable and safe. It protects both parties from any double-dealing or devious actions because the money isn’t transferred over until all conditions are met. Here’s a little more about how the process of escrow works.

The Beginning

Whether you are selling or buying, the first thing you should do is find out the value of the property or business. You can do this by consulting with a real estate agent or by searching medical properties for lease. After you’ve gathered an estimate on your property or the property you’d like to purchase, decide on a minimum/maximum you’re willing to buy or sell the property for.

Next, look into an advertisement for the space if you’re looking to sell. If you’re working with a broker they will likely do a lot of this advertising for you. But it doesn’t hurt to pitch in as well. For example, make a clean-cut print out of the property with photos, amenities, and price. Then post it around local establishments.

The Details

After you’ve set up your advertisement or, if buying, found a few properties you are interested in, you will want to lay out all your conditions on purchasing/selling. If you are a seller, you’ll want to make your books, including tax returns, inventory, profit and loss statements, etc, all out in the open for buyers to see. This shows a commitment to honesty and trust. Once you have a buyer or a seller, you can negotiate a price. When you’ve come to an agreement, the escrow account will hold the money exchanged usually for 30 days or more. This is done to give both the buyer and seller an opportunity to make sure all the terms on the contract were met.

The Close

When closing a sale, the following must be fulfilled:

  • All final documents signed
  • Payment for the escrow account met
  • All written conditions carried out by both parties

Once all of this is done, the funds in the escrow account may be released.

Types of Escrow

As mentioned above, escrow is typically used in commercial real estate situations. However, an escrow may be adapted for a homeowner as well. When a buyer moves into the home, they may choose to pay an escrow account to pay the mortgage lender. The lender then uses that money to pay property taxes and insurance. In this case, the mortgage lender has direct access to the escrow account. The benefit of using an escrow account in this situation is that it prevents the mortgage lender from falling behind in property tax or insurance payments. This usually means that a homeowner will have to pay about two months worth of expenses at first. This will, however, save you money in the long run. If you don’t have enough money in your escrow account, you run the risk of losing your insurance or home.

Business transactions that are done online are highly recommended to be secured by an escrow account.  It is highly recommended that an escrow agent secure online business transactions. There are too many cases of fraud on the internet. Having an escrow account will help secure the safety of your business. It’s also a great way, as a buyer, to ensure that you’re getting exactly what you want and need out of a business purchase by setting out your conditions and making sure they are met before a payment can occur.

Medical Properties for Lease

If you’re searching for medical properties for lease, look no further than Boulevard Medical Properties. Visit our website today to view what we have to offer or a free quote from one of our experts.