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.
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.
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.