top of page


  • Daniel Rodriguez

The need to negotiate a commercial lease

Anyone interested in renting commercial property must take steps to protect their financial interests. Signing a lease for inappropriate property or paying too much rent could undermine any positive economic outcomes for the California business. Signing an unfavorable contract would be equally unhelpful, so negotiating a proper lease could be a good idea.

Preliminary steps

Performing necessary research into the rental market might be a vital step to take at first. Potential renters should understand what the current going rate for rent is. This way, they can approach negotiations from an informed perspective. They may avoid asking for things that are unreasonable, as well.

Location and size factor into commercial rent prices. Would-be renters should figure out how much space they need and avoid renting something too costly or oversized. They should also look at the location to determine whether it will support the business’s goals.

Negotiating the lease

There are several elements that a tenant may want in the commercial lease. For example, they may choose a size that turns out to be too small once the business grows. Are there clauses in the lease that allow them to pay an acceptable penalty to break the lease early? Sometimes, the business could take a downturn. Clauses in the lease to help address problems with paying rent might help when such tenant/landlord matters arise.

A business could run a slim profit margin or at the break-even point for several years. Renovations and repairs could eat into cash flow. Ensuring the landlord is responsible for specific repairs and upkeep might be a critical element of the lease contract.

After negotiations conclude, thoroughly reviewing the lease agreement might be wise. Tenants may undermine their cause upon signing a lease with several problematic issues.

Recent Posts

See All

5 reasons that renters move

There are various reasons for California renters to move out of their homes. While many of these reasons are entirely out of their control, renters often move based on personal preference. Understandi


Sacramento form background.jpg

Connect with an Attorney

Your business deserves a legal partner that not only understands your current needs but is also equipped to evolve with you. NewPoint Law Group is ready to be that partner, ensuring that at every milestone, your legal foundation is as robust and forward-thinking as your business itself.

Embark on Your Legal Journey with NewPoint Law Group

bottom of page