It is not always easy for a business owner to decide to rent a commercial office space. It requires the ability to make an informed decision. The same thing applies to leasing a Dallas office space. It requires research and knowledge to reach the ultimate goal of finding the right place that meets all of a business’ requirements. Commercial leases have advantages and disadvantages, which is why it is imperative to weigh all of the factors, both positive and negative, before signing a written contract.
Items Included in the Agreement
Determination must be made of the exact information to be included in a written contract before it is finalized. The following are some things that should be included in a contract:
- Name of tenants
- Rent amount
- Rent escalations
- Size of the space
- Payment method and frequency of payments
- Due date for rent payment
- Detailed terms and conditions
- Insurance premiums as a tenant
- Front end and back end fees
- Security deposit
- Utility services included
- Termination provisions in case of early terminationClauses
In general, a commercial lease agreement is a legal contract that binds the landlord and the tenant. It shows in detail what both parties expect for the duration of the lease so that any conflicts or misunderstandings can be avoided.
Acquiring commercial space usually involves negotiation. This process is very dependent upon the Dallas office space available. Tenants want to negotiate terms that are suitable for a business to thrive. If unhappy with the terms, negotiations can be held so that both parties can meet somewhere in the middle. Included in the negotiations should be the monthly costs, any inclusions in the agreement, the terms, and sub-leasing. Since a commercial lease is a complicated agreement in comparison to an agreement for purchase, it is imperative to consult a lawyer or a similar expert to ensure that everything in the contract is accurate before it is signed.
Commercial Written Agreement
Commercial and residential lease agreements are very different. Commercial agreements often include the following:
- Little Legal Protection – Since a commercial lease is an agreement between knowledgeable business people, it is given less governmental protection.
- Non-Standardized Terms and Conditions – A commercial lease uses a variety of terms to suit the needs of the tenant and landlord.
- Highly Negotiable – Tenants can always negotiate the terms of the contract. Usually the monthly cost, increases, length, and permissible improvements can be negotiated.
- Lengthy Terms – Commercial lease terms usually last for many years, depending on business performance.
It is imperative for a tenant to know exactly what they require in terms of future growth, their budget, and their ability to rent the property before signing any kind of legally binding contract. This also applies to a Dallas office space. All of this information is vital to be known and understood before a contract is signed, as entering into the wrong one could significantly impact the success of a company!