As a potential tenant, renting a commercial property can be a significant investment for your business. It is important to understand the process of negotiating a commercial lease and to have a clear strategy in place to ensure you get the best deal possible. In this blog, we will provide you with tips and strategies to help you negotiate a commercial lease as a tenant, including the benefits of hiring a commercial lawyer.
Do Your Research
Before you should enter into negotiations on a commercial property, you should first gain some understanding of the current market, and rental rates particularly now with the rise of interest rates affecting the property market. Researching properties will give you a better idea of what to expect in terms of the rental price, and what the property owners are expecting from potential tenants.
Know Your Needs
Put together a list of what you are looking for in a commercial property, and what is required for your business. This will help you when it comes to prioritising your negotiating points and ensuring you get what you need from the lease.
How to Negotiate a Lease?
An experienced commercial lawyer, such as KLD Legal – can provide valuable advice and help you understand the legal language and terms used in a commercial lease agreement. They can also help you negotiate better terms and protect your interests.
A commercial lawyer can also review the lease agreement and ensure it is fair and reasonable and meets the needs of your business. This can be especially important if you are dealing with a landlord who has a lot of experience negotiating commercial leases.
Why Negotiate a Lease?
As a potential tenant, you want the terms of the lease to be clear and to understand everything that is being included in the contract. Often there are inclusions in commercial leases that are complicated, or that you as a tenant may not understand such as the:
- Term of the lease,
- Amount of rent to be paid,
- Numbers and length of options to renew the lease,
- Repair and maintenance obligations.
Also, there can often be clauses that might be preferable to the landlord, particularly for retail shop leases including:
- Favourable retail shop leases,
- Fit out requirements and landlord’s works,
- Rent increases based on turnover,
- Re-development or relocation of the premises.
A commercial lawyer will help you to negotiate these terms if you consult a lawyer before you sign the lease agreement.
Get Everything in Writing
Once you have agreed to the terms of the lease, it is important to get everything in writing. The best way to do this is with the help of a Commercial Lawyer. A Commercial Lawyer will ensure that you clearly understand the terms and conditions of the lease and will advise you of ways to protect your future interests.
Need Help Negotiating a Perth Commercial Lease Agreement?
KLD Legal are experienced Perth Commercial and Retail Shop Lease Lawyers. We are able to help with areas such as:
- Negotiating lease agreements, assignments, renewals, extensions and surrenders,
- Advising on and providing representation for disputes involving leases,
- Drafting lease documents including deeds of lease.
Contact Kerry Davis Legal today to see how we can assist with your Commercial Property Lease needs.