Guide to Negotiating a Commercial Lease


Lease mainly involves a contract in which both the owner and the user of a property agree on different terms. In the lease, the owner of the asses is referred to as the lessor whereas the user is known as the lessee. The following is the list of most common types of assets that can be leased, these include buildings, property, and vehicles. In a lease agreement, the lessor is the legal owner of the property whereas the lessee get the right to use the property of the lessor in return for monetary payment. The lessee is required by the law to abide by the set rules and regulations regarding the use of the property or asset of the lessor. One of the main examples of the lease agreement is the car lease, here, for instance, the lessee may only be allowed to use the car for personal use. More info at

A commercial lease is an agreement between the tenant and the landlord of a commercial building which contains certain rules and regulations on the use of the property. It is good to note that a commercial lease is different from the non-commercial lease in that the former takes into account properties that are used for conducting business activities, whereas the latter takes into account residential buildings. In a lease agreement, one can either choose retail, commercial lease or a non-retail commercial lease. People do mistake the two types of commercial leases, the retail, commercial lease for instance, occurs when a property is used for selling goods and services whereas the non-retail lease takes into account the use of a property for not selling goods and services to the public but are used for other business purposes such as making offices. Read on San Francisco commercial lease negotiation

When one wants to lease a commercial property; there are certain factors that they need to consider. First and foremost, it is important to identify a commercial property that is on the lease. Moreover , one needs to complete the commercial lease agreement then apply for the real estate lease. Once you have completed the commercial lease agreement and applied for the real estate lease, one need to evaluate the length of the lease. The length of a lease agreement pays a vital role in the choice of a lease, for instance a lease of one or two years is best for a small business.
In addition, the amount of rent that the lessee will pay plays a vital part in the commercial lease agreement. It is vital to research on the cost in the area that you reside so that you can be in a better position to negotiate for a fair price. The other vital factor to consider in a commercial lease agreement is the hidden costs, it is important to beware of the hidden costs of the lease agreement.

At times, a commercial lease may have modification which may affect you or benefit you, hence when choosing a commercial lease property, you need to ensure that the one you have chosen allows modifications that will benefit you.