When operating a small business, having the right space for your operations is essential. In many instances, business owners will lease rather than purchase commercial property. Depending on your industry, you may need to rent a retail-friendly spot, a professional office suite, warehousing space, or another type of property. However, there are several issues you should consider before committing to a rental agreement. Here is more on what you need to know before you sign your Florida commercial lease:
Location, Location, Location
We have all probably heard that one, if not the most important quality in real estate, is location. Where you decide to lease commercial space can significantly impact your business. Take your time to look for property in the areas you believe will best meet your needs and support your business goals. When selecting a space, you may want to work with a real estate professional who is knowledgeable about the community and the type of commercial properties available.
A Space For Now and in the Future
You will also want to consider if a proposed space will meet your needs for now and in the foreseeable future. For example, if you have plans to grow and believe you will require additional square footage, it will be important to assess whether or not a possible site can meet your expansion needs. You may also need to consider if you need designated parking spaces. Additionally, you may need to think about whether you expect to add new features (uses) to your business in the future. Can the property accommodate your future plans and other use?
Reputation
You will also want to do your due diligence on the proposed landlord when evaluating a property. As in any business, word can get around fast in real estate. For example, it may be well-known if a landlord has a reputation for delaying repairs and being unfair to commercial tenants. Your real estate professional should be able to find out more about the company or individual leasing the property. Making sure you are leasing from a reputable party can help you minimize the chances of having disputes that interfere with your operations.
Your Letter of Intent
Finding the perfect commercial space can require a lot of time and effort. Once you have identified the right location, you will want to protect your investment. By using a letter of intent (LOI), you and the landlord can set out preliminary terms and keep others from leasing the property during lease negotiations. LOIs have legal protections and implications. Therefore, to protect your interests, you should work with an experienced small business attorney when reviewing or preparing an LOI.
Negotiating Your Commercial Lease
Sometimes, lessees make the mistake of accepting a lease without negotiating or having it reviewed by a business attorney. However, your commercial lease document will include several important terms delineating how your landlord and tenant relationship will operate. You don’t want to sign anything without a business attorney’s review. An experienced Florida business attorney can help you identify potential issues and draft language that protects you and your business interests. They can also help you explore different types of leases and determine what will work best for your enterprise. In addition, your counsel can help you negotiate terms such as those pertaining to your lease term, rent, utilities, insurance, and use of the space.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.