{"id":4585,"date":"2016-04-04T10:47:36","date_gmt":"2016-04-04T15:47:36","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-operations\/negotiating-a-lease-for-commercial-real-estate.html"},"modified":"2024-06-06T03:29:24","modified_gmt":"2024-06-06T08:29:24","slug":"negotiating-a-lease-for-commercial-real-estate","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/negotiating-a-lease-for-commercial-real-estate.html","title":{"rendered":"Negotiating a Lease for Commercial Real Estate"},"content":{"rendered":"\n
\n \n
\n

Negotiating a Lease for Commercial Real Estate<\/h1>\n
\n
\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
\n

Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Commercial leases<\/a> are the starting point for many small businesses. Negotiating lease terms for a commercial space can be a make-or-break deal for a startup with little operating capital. Negotiation is a part of sitting down with a property owner to write a commercial lease agreement.<\/p>\r\n

Most small-business owners have little experience in the lease negotiation process. Like most of us, they’re familiar with standard residential rentals. An apartment rental is non-negotiable. You pay the listed price or find another place. Commercial lease negotiations have many more options and negotiation points. A commercial property owner wants to lease the property and is willing to make concessions to a prospective tenant.<\/p>\r\n

If you’re unfamiliar with commercial lease terms<\/a> and leasing options, consider having a business attorney<\/a> assist you during the negotiations. Read on to learn how an attorney’s services can help secure the ideal business lease.<\/p>\r\n

We make business formation EASY.<\/b> Click here to start your free LLC.<\/a><\/p>\r\n

Rent and Rent Increases<\/h2>\r\n

The monthly rent in a commercial lease is the base rent. Base rent is the cost per square foot multiplied by the square footage of the rental space. In a commercial real estate lease, the landlord may list an office space as the rental property but include the hallway or stairwell space as part of the rental square footage. An attorney can help spot these discrepancies and use them for negotiation points.<\/p>\r\n

Other rental costs include utilities, property taxes, building insurance, and maintenance. The tenants share responsibility for common area maintenance (CAM), such as lobbies, exterior landscaping, and bathrooms. The landlord may pay for building maintenance or include it in the lease. There are three categories of additional costs a landlord may add or "pass-through" to the tenants in a lease.<\/p>\r\n