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Steps of Commercial Leasing
Define your requirements Locate suitable property Request for proposal
Response to Proposal Negotiate the lease contract


Negotiate the lease contract

Various types of leases exist. Prior to negotiating terms of a lease, outline thoroughly provisions that would promote your business. Before entering into a binding contract, decide the duration:

A short term lease yields flexibility and more leeway to change your demands after a given period. Though long term leases are less supple, they provide stability. The negotiating process will take seemingly perpetual give-and-take, but settling for wary provisions is foolish. While the list is boundless, beware of the following stipulations:

  • Assignment Clauses;
  • Personal Lease Guarantees;
  • CPI-Based Rent Increases;
  • Permitted Use Clause;
  • Limitation on Improvements; and
  • Relocation Clause

Learn why these stipulations are unfavorable.

 

Although a lessee analyzes the provisions listed by the owner, he/she may want to insist on additional terms:

  • Exclusion Clauses;
  • Security Terms;
  • Space Boundaries;
  • Etc.

Also, skim through other commercial leasing tips.

 
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