Let a Lawyer Review Your Commercial Lease Agreement

 The landlord's objective is to maximize income from the rental of the commercial space from the tenants, and, sometimes to have the tenants pay the landlord's overhead. Therefore, it is important you understand ALL the charges that you will have to pay with your monthly rent. For instance, in addition to the base rent, you may have to pay CAM or management charges, sales tax, insurance, property taxes, percentage of gross sales and other expenses. Another item you should know before signing the lease is the term of the lease and the options to renew the lease, as well as if the landlord has the right to move you to a different location, sometimes at your expense. This is a very important item if you are planning to remain on the same location. Last but not least, you need to find out whether or not you have to sign a personal guarantee to enter into the lease agreement. This is very significant and many business owners miss this until it is too late. If you are considering entering into a commercial lease agreement, I recommend you get a consultation with an attorney with experience in reviewing commercial leases. Otherwise, could be one of your costliest mistakes if you decide to go it alone.  

For example, that your monthly lease payments after all the charges add up to $1,500 per month and the lease has 36 months remaining before the next renewal. Upon signing this lease agreement, you just assumed a $54,000 debt with a personal guarantee! I often interview clients wanting to exit the lease after their business income makes it difficult to meet rent obligations.  Typically, there are not too many escape clauses in a commercial lease agreement. Keep this in mind before you sign the lease agreement.