When leasing a building for business, companies must sign a lease agreement and may work with a real estate lawyer or broker to do so; they must show sufficient financial resources before pursuing a lease and understand all additional expenses to avoid being hit with hidden fees. Generally, business lease contracts operate on a 12-month schedule, as do residential leases. However, organizations should also investigate the potential for pursuing longer term two-year contracts, advises SBA.gov.
As with residential leases, corporate leases can be negotiated for the best price. At the start of a lease, renters should work with landlords to factor in rental price increases during the lease time, recommends SBA.gov. They should budget for the flat monthly rental-fee rate and any additional costs, such as shared responsibilities for upkeep and maintenance. Other business requirements such as parking attendants, security measures, heating and air conditioning and Internet connection may also tack on additional fees.
In addition to planning the budget, companies should take measures to protect themselves. This might include adding an addendum or provisional clause to the contract, such as permissions for subleasing to tenants and co-tenancy, which protects companies from losing customers if a co-property owner leaves and the landlord does not find a suitable replacement within a set period. Companies should also evaluate what activities are permitted within the leased area, and should inquire about add-ons and building expansions.