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Are you ready to sign a commercial real estate lease?

Finding the appropriate location for your small business in the Miami area is essential to your company’s success. While you may seek out a lender who will finance a commercial real estate purchase, many fledgling businesses decide to lease a building instead. Before you take this step, the Small Business Administration recommends taking several measures to ensure that a successful commercial real estate lease is negotiated.

Keep in mind that the amount of rent you pay to your landlord may be augmented by many other expenses, such as maintenance and repairs. Your responsibilities for these vary depending on the landlord’s preference. If the building is occupied by more than one business, there may be shared areas that are maintained with an extra fee, too. The potential for rent increases should also be taken into account.

Once you have been doing business in a successful location, being unable to renew the lease could cause a loss of customers, so you should review what that document says about your options. Your future landlord may also agree to include language that allows a grace period for paying late rent so you are not locked out or evicted at the first sign of trouble. A clause that permits you to sublease the space to another company may be helpful in the event of a financial crisis, for example.

Another factor of a good location is its distance from competitors, so you may want to request a clause in the contract that a rival business cannot lease a space in the same building. The lease contract may include many other elements that could negatively affect your success, but studying it carefully may help identify such details. This information is for educational purposes only, and should not be interpreted as legal advice.

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