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Red Flags When Signing a Commercial Lease

 Posted on April 24, 2022 in Commercial Real Estate

IL real estate lawyerBusiness owners have countless issues to consider when starting or expanding a business. One major concern for many business owners and entrepreneurs is securing a place in which to operate the business. If you are a business owner looking for commercial real estate, it is important to take your time and fully evaluate your options.

Before you sign a commercial real estate lease, it is essential that you have the lease reviewed by a skilled real estate attorney. Your attorney may be able to help you negotiate more favorable terms, and ultimately save you and your business money. Furthermore, your attorney can help you spot red flags that may be signs a commercial lease agreement is not in your best interests.

The Landlord Suggests a Verbal Agreement Will Suffice

As a business owner, you probably already know the importance of getting any business relationship in writing. Unfortunately, even the savviest business owners have been ticked by smooth-talking landlords who assure them they have nothing to worry about. Make sure you get the lease in writing and have your attorney review the lease before signing.

Vague Renewal Clauses and Long Term Clauses

Most business owners choose a commercial real estate property with the hope of using it long-term. Renewal options should be clearly stated. The lease should also explain how much time you have to renew and how much the rent may increase. Vague renewal terms can be a red flag. Similarly, look out for long-term clauses that force you to commit to a property for longer than you may be able to. If your business grows or things change, you may want to make a change and be unable to.

Unclear Tenant and Landlord Responsibilities

It is imperative that you understand your responsibilities as a tenant. You must also understand what your landlord is promising you. For example, you need assurance (in writing) that your landlord will handle building repairs and issues with plumbing, heating and air conditioning, electrical, and gas. If you do not have this in writing, you may find yourself with an unusable space if something goes wrong.

Contact a DuPage County Real Estate Lawyer

At Stock, Carlson & Asso. LLC our Naperville real estate attorneys are highly experienced and knowledgeable. We can review your commercial real estate lease and help you identify any unfair terms or red flags. Call our office today at Stock, Carlson & Asso. LLC for a confidential consultation.


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