It is a significant business decision to enter into a Commercial Lease which should not be taken lightly.
After all a Commercial Lease is a legally binding contract that will affect the value of your business. Therefore, having a complete understanding of Commercial law and all of the necessary information from the outset is essential to making an informed decision.
If you are obtaining a Commercial Lease as a tenant, you must ensure that all of your rights and obligations are adequately specified in the lease. If they are not, you may not be able to trade profitably. The rights you will need for the benefit of your business will depend on your particular circumstances but may include exclusivity of trade or the right to terminate or reduce rent if you are reliant on an anchor tenant.
As a potential tenant you must ensure that you are able to use the premises for the business activities you require. If the lease limits the permitted use or doesn’t allow for your business to grow and evolve then this could have a negative effect in the future.
You should be aware of your rights when it comes to the cost of fit-outs and repairs as these can be a costly expense for your business that you need to be prepared for.
When it comes to negotiating the term of your lease you need to be sure that it is long enough for you to make a return on your investment and start to earn profits. The term you choose will depend entirely on your circumstances. For example, a new business may better suit a short lease with shorter options when compared to a long-term business which may better suit security in a longer lease.
These are just a few of the matters you should be aware of before signing a Commercial Lease. There are many more issues which may arise that could have a significant impact on your business if not addressed properly. That is why it is essential to get the right advice before you make any significant decisions for your business.
Vaarzon-Morel Solicitors will take the time to understand your business. We will provide you with the right advice so that you can make an informed decision. Let us worry about the legals so you can do what you do best, grow your business!