In order for business owners to receive the best terms on their commercial lease, they should feel comfortable negotiating the original terms, as well as extensions and renewals. When negotiating a lease, business owners should consider the following:
1. Concessions. Often, a property owner can make moving allowances or offer rental abatement in a bid to attract high-quality tenants.
2. Termination options. A tenant should look for flexibility in case they need to change their lease before its term is up.
3. Operating expense cap. While tenants are typically responsible for operating expenses, they can protect themselves against large annual increases by agreeing to a ceiling on the tenant portion of annual operating expense increases.
