Prior to the actual signing of a lease for Plano office space, it is absolutely essential to read and comprehend the lease. This should be done to thoroughly ensure that all specifications and provisions that were agreed upon by the property owner are listed in the lease to prevent any future problems. It is imperative that the business owner understand the fact that a commercial lease is far different from a residential lease and there is no standard form being followed. This is the one-sided nature of a commercial lease. It is created for the landlord’s needs; yet it is flexible and negotiable so that both the business owner and the landlord receive equal benefits.
Negotiations
Residential leasing, which requires just simple negotiations such as how many people will occupy the space or if pets and visitors are allowed, is unlike its commercial counterpart. In commercial leasing, both parties must discuss certain conditions such as leasing extra space, office divisions and any modifications that may be needed for the operation of the business. All of these things must be put into writing and included in this agreement. Negotiations are crucial during the leasing process.
Consumer Protection Laws
Since commercial leasing is a contract made by business people, less government protection is required. Business people know how to negotiate the terms of a lease for Plano office space to achieve satisfaction.
- Amount of Rent – The rent for a commercial property is higher when compared to residential properties. It is important to know that there are two types of leasing options: gross and net agreements. In a gross lease, the business is paying a pre-determined amount of rent and the landlord pays the operating costs of the building for the entire duration of the lease. In a net lease, the business pays not only the settled rent amount but is additionally responsible for paying the taxes, insurance and maintenance expenses. There is usually a security deposit involved, but this differs from one state to another. Commonly, the business pays the first and last month’s rent at the same time. In other words, one month deposit and one month is paid in advance.
- Length of Term – Specifying the length of term of an office lease is essential before it can be signed. A short-term lease is ten years or less and a long-term lease is ten years or more. The duration of the lease usually varies based on individual circumstances and the status of the business. Both short and long-term leases have advantages and disadvantages. It is up to the business owner to weigh all the options and make a decision before arranging the length of the lease term with the landlord.
It is important for the business owner to completely understand the entire process of leasing a potential commercial property before they sign a Letter of Intent. They must understand and agree on the terms and conditions representing the acquisition of the office space. Keep in mind what the business is looking for in a lease as far as the amount of rent they can afford to pay, length of term and the most common issue which is renovation of the space to suit the needs of the business.
If a business owner has any confusion or any other concerns with the commercial lease agreement, they should talk it over with the landlord or consult an attorney. It is also important to know the laws concerning tenant’s rights. Knowing what a business is getting from a Plano office space lease before signing the agreement is essential in preventing future complications with the property!