Renting commercial space is a big decision for your company. It can sometimes be a lengthy and tedious process. Giving yourself a window of six-to-nine months to secure a lease is a sound approach. You should begin renewal negotiations nine to twelve months before your lease expires to give yourself relocation options if things don’t work out.
Real estate agents may not necessarily help you secure the best terms for your lease, especially if they’ve had prior dealings with the landlord before. It may be essential to involve a lawyer in the negotiation process to ensure that the lease is legal and doesn’t have any terms and conditions that are adverse to your best interests. In the grand scheme of things, it’s your responsibility to broker the optimal terms and conditions possible, though.
Personal guarantees and security deposits associated with commercial leases are virtually always negotiable. They’re not legally required.
A personal guarantee should diminish over time and have a defined expiration date. It’s essential to understand that your goal is to secure a location to operate your business successfully. You shouldn’t treat your commercial lease as if you’re going into business with the landlord.
Landlords often think of their buildings as investments. Their goal is to maximize the profits that they make off them. You, as the lessee, want to minimize your costs and protect your bottom line. The two concepts are in direct conflict with each other. You two should be able to come to a mutually beneficial arrangement as long as the terms and conditions of the lease are fair, though.
If you are considering leasing commercial space here in Louisville, then you need to understand that you have certain rights and obligations when negotiating a rental contract. A commercial real estate attorney can walk you through what those are and help you negotiate with your landlord to obtain the best possible lease terms for you and your Kentucky business.