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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