Understanding the business aspects of a lease. Most tenants and prospective tenants focus primarily on the rent. The rent is only one component of a lease. The following are some of the clauses that need to be negotiated prior to signing a lease:
When does the rent begin? The tenant needs time to renovate, arrange for gas and electric and should never begin before a certificate of occupancy (CO) is issued. The use clause should be very flexible to permit future needs. In addition to paying rent, the tenant will be paying a portion of the increased costs that the landlord will incur over the years to operate the property. The base year needs to be established and no capital costs should be included. In the event of a fire or other casualty to the building which cannot be repaired in a short period of time, the tenant needs the capability to terminate the lease without any penalty.
In addition to the above, there are other clauses that could have a significant impact on the total occupancy cost of the space.
3 Responses to “Leasing Commercial, Retail, & Industrial Space”
Hello. I am just starting to plan my small business. I will be opening a yoga studio. I am in the process of learning everything I can about being a small business owner and planning for a successful yoga studio. This workshop is a good start.
Hello. I am in the process of starting a small business. I am in the planning and saving phase and am excited to learn about SCORE. I think this workshop is a good beginner and eye opener for me. Thank you
SCORE Westchester says:
We are so excited to hear that you’ll be opening a new business in Westchester. We’re happy to help at any stage of the process. We offer free weekly workshops every Wednesday from 1-3PM in our White Plains office & also offer 4 options for free business counseling. We wish you the best of luck as you begin to plan your yoga studio, and we hope you’ll reach out to us to help you in any way you need! We look forward to meeting you!
The SCORE Westchester team