Skip to content
  • Submit Guest Post
  • Advertise

Realestateblog247

Real Estate Blog, Posting tips on properties buying, renting, and house moving, furnishing and building; helping you make wise decisions.

  • Buying
  • Renting
  • Furnishing
  • Moving
  • Building
  • Toggle search form
Tips to Negotiate a Commercial Lease

Tips to Negotiate a Commercial Lease

Posted on January 28, 2020January 28, 2020 By Emily Benjamin No Comments on Tips to Negotiate a Commercial Lease

A lease and its associated expenses can be a business owners’ largest expense that many tenants may be overpaying for or be stuck with hidden fees.

Leases are legally binding contracts that should be thoroughly looked over and more importantly understood before signing. If the terms of the lease agreement are not understood, the lessee (business owner/tenant) could be at risk for major unforeseeable expenses that could have otherwise been negotiated out of the lease agreement.

Types of Leases

Before we dive into negotiating leases, we should first understand the different types of leases.

Single Net Lease or Net Lease

In this lease, the tenant only pays for the utilities and property tax, while the landlord handles maintenance, repairs, insurance, etc.

Net-Net or Double Net Leases

This lease requires the tenantto be responsible for paying only the utilities, property tax, and insurance premiums of the property. While the landlord pays for the maintenance and repairs.

Triple Net Lease (NNN)

A triple net lease the tenant is responsible for paying the building’s property taxes, insurance, and any maintenance or repairs on the property.

Modified Gross Lease

A modified gross lease sometimes referred toas a full-service gross or modified net lease is a lease that splits most of the expenses with the landlord. Typically, they will split property taxes, insurance, maintenance (and common area maintenance or CAM), and repairs.

Compare Your Business Needs and the Length of the Lease

The first step you should take before diving into the negotiation process is to do some research into the projected growth of your business and determine the optimal size of the space you may need. You may want to look for a space that offers a little bit more space than you currently need but could grow into. You may also want to negotiate a shorter lease term in the event you want to move to a larger space down the line.

Leave plenty of Time for Negotiations

The last thing you want is to not give yourself enough time for negotiating. Finding yourself in a time crunch can result in less than favorable conditions for negotiating on your side. Be smart and give prepare early. Expect multiple in-person meetings, phone calls, emails, etc.

Involve a Professional to Help You Negotiate

There are lawyers, brokers, and a few companies that are dedicated to helping business owners review leases in order to make sure you get a fair deal on the conditions of the lease. It is a good move that, despite having some upfront costs, could save you a lot of money in the long run, especially if signing a long-term lease. These professionals will fight to ensure you get a favorable lease that benefits you as much as possible and they will work hard doing it.

Understand Your Costs

Make sure you carefully review the incidentals you are being asked to cover and be sure it works with your budget. Review the lease for future increases in base rent and incidentals, as they should be carefully specified. You may be able to negotiate changes here.

Look for Hidden Costs

If the lease requires you to pay for maintenance or repairs, have a professional inspect the condition of the building and the items that need regular maintenance/upkeep. If something is going to clearly need any repairs or regular maintenance, you can negotiate the costs of upkeep or repair of these items in the cost of the lease.

Favorable Clauses

You can negotiate a clause that’s favorable to your business. A classic example is your business takes a hit and you may need to downsize. You can negotiate a clause in the lease that would allow you to sub-lease your extra space to another tenant.

Examine the Termination Clause

You’ll want to negotiate a clause into the lease that allows you time to remedy a default before eviction. Ideally, this clause will allow you to pay one month’s rent rather than the entire amount owed on the lease. Additionally, you will want to negotiate any early termination fees should you decide to leave before the term of the lease is up.

Summary

The most important thing you can do for yourself is to completely and thoroughly understand the lease and everything that is outlined in the lease. It will allow you to realize the benefits and shortcomings outlined in the lease and give you the power to leverage the conditions in your favor. Do not be afraid to seek professional consultation either as outlined above. It could end up saving your business in the end.

Emily Benjamin
Emily Benjamin

Emily works for Biproxi, an end-to-end commercial real estate listing platform that connects buyers and sellers and is committed to providing the best tools, data, and applications to empower brokers to sell intelligently, and buyers to invest confidently.

Renting Tags:Commercial, Lease, Negotiate, Rent, Tips

Post navigation

Previous Post: Best rental investment opportunities in Florida
Next Post: How to stage your Maryland rental?

More Related Articles

Guide to renting a commercial property in Florida Guide to renting a commercial property in Florida Moving
Exploring the Pros and Cons of Buying vs. Renting in Nigeria Exploring the Pros and Cons of Buying vs. Renting in Nigeria Buying
Renter’s guide to New Jersey neighborhoods Renter’s guide to New Jersey neighborhoods Renting
rent to own homes Now you can have a Home without Paying Mortgage Renting
Best places to live in Kirkland, Washington Best places to live in Kirkland, Washington Buying
6 tips for first-time renters in Miami 6 tips for first-time renters in Miami Renting

Leave a Reply Cancel reply

You must be logged in to post a comment.

Put your name and email to get notification anytime a new post is made.
Loading

Recent Posts

  • London’s Artistic Workshops and Classes: Cultivating Creativity Across the City
  • Reasons Why Setting an Excessive Price for Your Property Is Not Recommended
  • Expenses to Include in Your Budget When Purchasing a Home in the USA
  • Connecting with Nature: Best Outdoor Activities and Parks in London
  • The Ultimate Guide to London’s Hidden Gems: Exploring Off-the-Beaten Pathways in 2025 🏙️🌿
  • How to Prepare Your Romford Home for Viewings and Keep It Show-Ready
  • A Step-by-Step Guide to Selling Your Essex Home Quickly
  • Top 5 Questions Romford Sellers Ask Before Listing Their Property
  • How to Spot a Great Harlow Rental Deal: Your Ultimate Guide
  • Land Flipping in Nigeria: Untapped Potential or Risky Business?
  • How Infrastructure Development Skyrockets Land Property Value in Nigeria
  • Buying Land in Nigeria: A Short Guide to Due Diligence
  • Digital Marketing Strategies for Real Estate Agents in Nigeria: Dominate the Market
  • Understanding the Roles of Real Estate Agents and Lawyers in Nigerian Land Transactions
  • Navigating the Complexities of Commercial Land Acquisition in Nigeria
  • Investing in Agricultural Land in Nigeria: Opportunities and Challenges
  • Land Surveying in Nigeria: A Crucial Step for Property Buyers
  • Secure the Best Land Prices in Nigeria: Your Ultimate Negotiation Guide
  • Investing in Nigerian Land: Top Locations for High Returns
  • The Legal Aspects of Land Ownership in Abuja: A Comprehensive Guide for Buyers
  • Land Valuation Demystified: How to Assess the True Worth of Land in Anambra State
  • Maximizing Your Land Investment: Innovative Development Ideas for Eastern Nigeria Properties
  • Red Flags When Buying Land in Abuja: A Buyer’s Guide
  • Land Investment Strategies: Short-Term vs. Long-Term Gains in Lagos
  • Top 5 Areas for Prime Land Investments in Lagos
  • Choosing the Right Land in Lagos: Key Factors to Consider
  • Insider Tips for Negotiating the Best Price for Land in Lagos
  • Snap, Edit, Sell: Your Guide to Choosing Real Estate Photo Editing Services
  • Top 8 Advantages of Account-Based Marketing for Real Estate Professionals
  • Top 7 Reasons Real Estate Agents Must Invest in Their Own Websites

  • Buying
  • Renting
  • Furnishing
  • Moving
  • Building
  • Submit Guest Post
  • Advertise

RealEstateBlog247 teaches everything about real estate. Therefore, publishes informative and educative articles on properties: houses, offices, shopping malls, land, etc.

Put your name and email to get notification anytime a new post is made.
Loading

Copyright © 2025 Realestateblog247.

Powered by PressBook Blog WordPress theme