Step One: Read your lease.
As SBA said, this should go without saying but I’m going to remind you all here. Read over the lease and hire an attorney with a specialization in commercial leases to ensure you are getting a fair and complete contract.
Step Two: Negotiate.
Consider long-term and short-term leases and how they will affect your rent rate. Most landlords will want to lock you in for a long-term lease and you may be able to use this as a bargaining strategy for getting the best rate per square foot. Also, be sure to consider the rent increases and the protocol for renewals, should you wish to stay in the building. It would probably be a good idea to hire a Tenant Rep broker for this part--they can navigate through the fine print and ask the right questions while fighting to get you the best deal.
Step Three: Know the extra and hidden expenses before you sign the contract.
The last thing you want is to be surprised by maintenance fees and the cost of utilities. It could make or break your decision to lease. You might also want to ask for examples of the costs, perhaps from records of previous tenant lease.
Step Four: Consider adding clauses to protect your business.
It will give your business the flexibility, without the liability, in case you need to change locations or are afraid of competitors in close quarters. Sublease, co-tenancy and exclusivity clauses are all ones you should consider adding.
Step Five: Prepare for the worst.
Unfortunately, businesses default on their leases. Find out what the procedures will be if this were to happen to you. Are there eviction proceedings? How much money will you be expected to pay? Can you negotiate more time? These are all very important questions--their answers can help you prepare for the consequences in the event of an unforeseen default.
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Other articles to check out:
5 Tips for Negotiating a Great Commercial Lease
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