When you’re signing a new commercial lease it’s important to try and find the right balance between a long enough lease to let your get your business up and running and a short enough lease to be able to cover the costs if your business fails.
However, this isn’t always easy. Many landlords will want you to sign a long-term lease that’s at least 5 years, and they might try and pressure you into this. It’s important to make sure that you don’t let yourself be pressured in situations like this, otherwise you might regret it later. Make sure that you employ the services of a decent property lawyer to help you negotiate your lease, and make sure that you’re clear on the fine print.
Ultimately, there are a few things you should take into account when deciding how long to sign a commercial lease for. We’ve outlined some of the most important below.
Consider Your Business Vision
It doesn’t matter how long your business has existed for, or even if it’s brand new. If you’re serious about building it and expanding your services in the future, you need to take this into account.
If your business does grow, you might end up wanting to relocate to larger premises at some point. This can be hard if you’re locked into a long-term lease.
Work closely with your commercial lawyer to negotiate a lease that either: (1) only lasts for a short time or (2) gives you an exit clause if you need to find larger premises.Continue Reading