Commercial Solictiors
Signing a Commercial Lease Agreement

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Signing a Commercial Lease Agreement

Jarmans Solicitors help with Signing a Commercial Lease Agreement.

Commercial leases are essentially considered to be contracts between two businesses and, as a result, need to be considered and negotiated in the same manner. While it may be very tempting to rush into signing a lease for the perfect retail or commercial property, it is vital that you obtain specialist legal advice and properly check over the contract before you sign it.

Jarmans Solicitors have extensive experience in negotiating commercial leases and ensuring that our clients are fully aware of their contractual rights, obligations and the financial implications that their lease entails. We fully believe in negotiating with landlords before signing, in order to ensure that the needs of the landlord and tenant are met.

There are a number of considerations for any business considering leasing commercial space to keep in mind when entering into contract talks.

Consider a short-term lease

Things can change very quickly and it’s impossible for any of us to predict where our businesses will be in 10 to 20 years. While a longer lease may carry a far more attractive rate, it is worth negotiating a short-term lease until the business has become well established. It makes far more sense to opt for a shorter lease with guaranteed renewal over the potential of being financially burdened for a longer period if the business fails.

Obtain an exact breakdown of costs

Commercial and retail premises can be a big outlay for any business, so Jarmans recommend requesting an exact breakdown of costs from the landlord. Your agreement should clearly state when rent is due and how much it is, alongside any other costs for maintenance, service charges and buildings insurance.

Who is responsible for repairs?

It’s vital that you discover whether you or your landlord is responsible for any repairs or maintenance of the building before you sign a commercial lease agreement. This can be done through negotiations between both parties and ensuring that clauses are inserted which stipulate where each responsibility lies.

Include a break-clause

A break-clause is a clause that protects you should you need to end your lease early. These should be negotiated with your landlord before you both sign a contract. Poorly negotiated clauses can lead to financial worries and concerns should a business fail to make profits.

Seek professional advice

In much the same way that business owners are experts in their fields, the team at Jarmans Solicitors are experts at negotiating and reviewing contracts. Speaking to a solicitor could save financial worry and stress in the future and allows you to start your business in your new premises with confidence.

If you’ve seen a commercial property and are eager to move your business into it, contact our team of solicitors to ensure you’re properly represented.

Signing a Commercial Lease Agreement
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