You Ought to Know: 5 Tips to Effectively Negotiate a Commercial Lease

A commercial lease is a negotiation between the owner of property leased and the tenant. It is an agreement defining the terms and conditions of commercial property rental. Agreeing to a lease can be as complex as purchasing a new car or as easy as buying a brush.


As such, it is much simpler if you are negotiating with one entrepreneur who is very flexible and uncomplicated if you are dealing with huge companies whose rules and guidelines allow for no agreements. If you are planning to rent a commercial property, know that there are some things that you need to consider before finalizing your commercial lease.

For a little help, read the tips below to pull-off or negotiate a commercial lease effectively and efficiently.

You Ought to Know: 5 Tips to Effectively Negotiate a Commercial Lease

Find Out your Leasing Options

Various kinds of commercial leases and abbreviations vary in usage and meaning depending on who is utilizing them. When it comes to this type of lease, there are a few formats that relate as to how much a tenant needs to pay aside from the monthly rent.

Gross Rent Lease

In this type of commercial lease, tenants pay you a certain amount of money that deal with all the incident costs and base rent. It covers property tax, utilities, repairs, maintenance, insurance, and other area expenses like janitorial services, snow removal, grass cutting, landscaping, and property management.

Net Lease

Tenants only pay the property tax and utilities. Hence, the landlord pays for the repairs, maintenance, and insurance.

Double Net Lease

Tenants are responsible for property taxes, utilities, and insurance fees for the property. The landlord is responsible for the repairs and maintenance.

Triple Net Lease

Tenants are responsible for all the expenses and costs of the property. But the landlord will pay for the repairs and maintenance.

Modified Gross Lease

In this type of commercial lease, both the tenant and the landlord will share the costs of the operating expenses, repair costs, and property insurance.

Know Additional Expenses

Apparently, there are extra charges for the utilities provided by the landlord such as trash disposal and preservation of shared facilities like a car park. As such, be sure to know expenses beforehand.

Demand for Advantageous Clauses

Before agreeing to the commercial lease, ask the landlord for adjustments that will be best for you. For instance, inform the property owner that you want to sublease the real estate if your business unexpectedly closes or relocate.

Also, ask for a provision in the document that inhibits the landlord to rent-out any available units on the grounds and buildings to a business analogous to yours. You can also include a clause that makes the landlord responsible for improving the commercial property before you move in.

Discuss Default and Termination

In some places, negligence to pay your monthly rent on a commercial rent out can instantly lead to lock-out. Know that this can ruin and destroy your business, in the long run, so you should openly negotiate if you are not able to pay the rent for a certain month.

Include All Terms of the Lease

Be sure to include all the terms and conditions of the written lease. As a tenant, you should review all the terms the landlord provides. Make some modifications if the lease lacks something or if it does not go along your oral agreement.


Before agreeing to a commercial lease, be sure to read the agreement carefully and thoroughly. Understand and comprehend it. By doing so, you will know what changes or benefits you can demand, and you can prepare yourself for your future responsibilities as a tenant. Get professional advice in firms like Rose And Jones.

Author Bio:

Cynthia Crane is a blogger and writer. She loves to write just about anything related to business, real estate, fashion, and travel. She loves to travel around the world to gain experience and additional knowledge. In her free time, Cynthia hangs out with her college friends.

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