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Factors that impact a commercial lease

On Behalf of | Dec 7, 2017 | Commercial Real Estate

Texas business owners who are looking for a commercial space to rent should be ready to negotiate the terms of a lease. This is because what a landlord may be willing to offer depends largely on market conditions. When times are bad, a business owner may get several concessions from a commercial landlord. Of course, it may be tougher to negotiate in good economic times.

Rent is generally calculated by taking the cost per square foot and multiplying it by the total square footage of the space. That is then divided by 12 to come up with a monthly rental fee. Other costs may be included in the rent as well such as utilities, taxes and insurance. However, that depends on whether the lease is a gross lease, a double net lease or triple net lease. In addition to market conditions, the length of a lease may determine if a landlord is willing to make concessions during contract negotiations.

Business owners may want to negotiate the ability to sublet a space. Doing so may allow a business to get out of its lease with greater ease if the need arises. It may also be worthwhile to get the landlord to pay for some or all needed improvements to an office building or other commercial space.

While business owners may be able to negotiate a commercial lease on their own, it may be possible for an attorney to negotiate on behalf of a company. This may be ideal for those who may not have confidence in their negotiation skills. It may also be ideal for those who want to spend time doing other things for their companies. In most cases, it may be a good idea to have an attorney review a commercial lease before signing it.


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