Getting into a commercial lease agreement is not a simple task. It is crucial that you understand precisely what you’re getting into. Critically analyze the lease agreement and ask the relevant questions beforehand. Take into consideration the people or company you are leasing the property from. Only deal with those who have a solid market reputation, and have the proof to back up their claims.
We will look at some questions you need to ask when looking for commercial retail for lease in Lorton, VA.
Do You Really Understand the Lease?
A layperson may not be able to understand some of the clauses in a lease agreement. You must take time to read the whole document. If you find that the language is too complicated, get an expert to go over the contract. Like any other contract, each party will have their own selfish needs ahead of the other.
Getting someone with a good understanding of the language can save you a lot of headache. Some use general terms, while others may have some legalese. In some cases, the landlord or broking company may have left out some critical components. Look for factors such as dates, rent, obligations, and lease terminations, among others.
Have You Negotiated the Best Deals Possible?
You have the option of negotiating some of the clauses in the lease agreement. The landlord should not ‘force’ you into signing something you do not agree with. Your transaction should only be complete once you are both in agreement. Present your case once you go through the contract, highlighting what you feel could work better.
Anyone who has been in the real estate sector for some time will expect this to happen. It may surprise you just how willing your potential landlord is to negotiate some of the clauses.
What Obligation Do You Have With CAM?
CAM or common area maintenance is something you need to be aware of. It means you will be responsible for parts of the related expenses. It could be a percentage of the rental fee or other considerations. Try to negotiate the rate basing it on the building.
Some landlords may vary the cost depending on the number of tenants they have in the building. Others could include some of the expenses such as legal or marketing fees in the CAM. It could eventually make it very expensive for you if the tenancy is low. Basing the percentage on the overall building protects you from such cost variations.
Some landlords may also include administration fees as part of your obligations. It will drive up the cost of the rent, making it expensive for you to lease commercial retail property in Lorton, VA.
Do You Understand What the Capital Expenditure is?
Leasing any type of commercial property comes with certain structural expenditure. It may, for example, refer to expenses related to major replacement or repairs. Look out for any disagreement that shifts the burden of such costs to you. While you may not be able to escape all of them, be careful about what you agree to.
You may need to get into a compromise with the landlord on how much you take on. You could, for example, consent to maintenance aspects but not total repair or replacement. You could also put a cap on how much you are supposed to spend.
Can You Assign or Sublease?
You may have found the perfect commercial retail for lease in Lorton, VA. Unfortunately, the business does not take off as you thought it would. You now find that you are not able to continue with the lease agreement. Instead of opting out of it, you can negotiate to assign it to somebody else. In some instances, the landlord may want to renegotiate better terms with the assignee. When going through your lease agreement, make sure you include the provision for being able to assign the property.
The other option you have is to sublease part of the property. It works perfectly well when you have a lot of space that you may not be putting to good use. Some landlords may not agree to this, so make sure you bring it up before you append your signature on a document.
What Options do You Have for Arbitration?
It is not uncommon to hear tenancy issues ending up in court. You can include a clause in your lease that allows for arbitration. It saves the time and expense of lengthy court cases. Ensure you have a say in who forms part of the mediation to protect your interests. Once you do, include it in the lease agreement.
Are You Working with the Right Team?
We cannot emphasize this enough; have a legal representative to look over any contracts before you sign them. It is also critical that you apply your due diligence to ensure that you’re working with reputable individuals or companies. Some people have lost colossal sums of money to scammers in the real estate sector. You don’t want to become part of a statistics because you did not research who you were entering into an agreement with.
Talk to us about Leasing Commercial Property
When looking for commercial retail for lease in Lorton VA, it is critical that you work with a reputable company. You do not want to lose your hard-earned money to scammers, or get into agreements that don’t favor you. We understand the real estate environment due to our experience, plus the number of years we have been operating. Talk to us today and let us help you with the process of establishing the right property for you.