Don’t let unfamiliarity with commercial leases jeopardize your business

No matter what type of business you operate in Minnesota, if you intend to operate out of commercial space that you don’t own, you will have a lease. As a tenant, you have numerous rights. However, failing to understand those rights and how to enforce them could cause trouble for your business.

When you are negotiating your commercial lease, be diligent and attentive. Review your lease and make sure you understand your rights and obligations. For example, the type of lease; the lease term, including option rights; the rent payable during the term, including reimbursement of operating expenses; maintenance responsibilities; use requirements and prohibitions; and default and remedies.

Understand that you typically won’t have all the time in the world to examine and negotiate a lease. In fact, time can be working against you. If you wait too long to consider a lease, you could lose the space to another party. In other words, there is a clock ticking on commercial real estate leases and their terms.

However, this is not to say you should rush through the process and sign something without understanding it. That, too, could spell disaster for your company.

With all this being said, we urge readers to discuss any commercial real estate questions or concerns with an attorney sooner, rather than later. With swift action, you can avoid complications and disputes; with legal guidance and support, you can be confident that as a business owner and a tenant, you are protecting yourself and your company.

Archives