For the vast majority of businesses, owning the building from which they operate or trade is usually not feasible. The main reason for that is the huge financial obligation necessary to purchase such buildings and the additional costs associated with their operation and maintenance.
This is why commercial leases are a legal document that most business owners will be familiar with, as that they allow them to lease a building or offices from a commercial landlord to trade from. Each landlord may have their own bespoke commercial lease, but the terms and conditions within it must comply with commercial law relating to commercial property leasing.
Each commercial lease will contain several components which form the agreement between the commercial landlord and the business owner leasing the premises. Below are seven that are certain to be included.
Lease Duration: The duration or ‘term’ of the commercial lease will state how long the tenant will rent the property from the landlord. This has importance for both the tenant and the landlord and is thus likely to never be too short not too long a duration. Before signing a business owner needs to consider if the term is congruent with their business’s growth and development.