Searching for a commercial location to operate a business is a big decision with many considerations. Not only can location be an important factor, but so can the size of the space and the cost. As a business owner, reducing expenses and overhead to maximize profits is essential, so every expenditure needs to be scrutinized to ensure that a company is getting the most value. If you are considering opening up a brick-and-mortar location for your business and you think you have found the exact space that will work, understanding what comes next can be helpful.
Negotiating a commercial lease is a critical part of the process of opening up the doors to your new location. If this is your first venture, be prepared to negotiate with a savvy and experienced landlord who likely has been through the process many times. As a result, landlords typically come from a position of strength in obtaining the upper hand. After all, landlords usually prepare their own lease agreements, and they are unlikely to put the interests of the lessee at the forefront.
Business owners ready to enter into a real estate agreement in California can connect with a Los Angeles commercial real estate attorney at the Leiva Law Firm. The Leiva Law Firm has decades of experience helping businesses acquire and lease commercial real estate with favorable terms that will work for them.
Top Tips for Negotiating a Commercial Lease in California
When you sign a commercial lease, you are entering into a legally binding contract that allows you to occupy a property for a period of time and for a specific cost. As a result, it is imperative that you protect yourself and come to the table armed with knowledge and a comprehensive understanding of your goals and finances.
These five tips can be helpful when it is time to negotiate the terms of a commercial lease in Los Angeles.
- When you find your location, do some research on similar comparisons to get an idea of what is reasonable and fair for the area and the property. Also, it can be helpful before you enter into negotiations to chat with other local businesses in the area about their experience running their operations. You may want to inquire about security, demographics of the area in Los Angeles, and other subtleties that may not only affect your business but also be helpful during negotiations.
- You may be able to secure lower lease costs if you are open to longer-term lease agreements.
- Make sure to fully read and understand the termination clause and have an idea of what rights you want to have if you decide to end a lease early without incurring costly contractual penalties.
- Think about what your business needs are and how the lease will best work for operations. Changing lease terms to include clauses for your business’s benefit can make the overall agreement most favorable for your company.
- You do not have to be an expert negotiator. While it is helpful to have an understanding of the process and how to work out a fair agreement, it is usually best to let the professionals do the heavy lifting. Having an attorney on your side gives you an advantage for the most agreeable terms.
Speak with an Attorney at the Leiva Law Firm Today
Are you ready to sign a commercial lease in Los Angeles? Call the Leiva Law Firm today to schedule a free consultation at (818) 519-4465, where you can learn more about how working with an attorney can help.