What questions should I ask when viewing a commercial property?
Commercial real estate leases are VERY different from residential leases. Pretty much anything goes and clauses that would be illegal on a residential lease are perfectly legal on a commercial lease. Some things to consider: 1. Monthly rent. 2. Total rent for the lease term. 3. Who pays for maintenance & repairs? (The tenant often does.) 4. Who pays property taxes? (The tenant often does.) 5. Who pays for insurance? (The tenant often does.) 6. Does the lease provide for a lien on the property of the tenant to secure payment of all monies due to the landlord? (Most commercial leases do.) 7. How much notice is required to terminate the lease at the end? (90 to 180 days are not unheard of.) 8. Does the rent rise with your profits? (This is common on retail space but may be included in any commercial lease.) 9. Do any improvements that you make become the landlord’s property? (Again, this is common with commercial leases.) While it’s always a good idea to have proposed contracts reviewed b
