Commercial landlords and tenants in Nashville typically have different priorities. Landlords are interested in making sure that they receive the agreed-upon rent on time and that their property remains in good condition. Tenants are focused on having a space that encourages their businesses to succeed and a landlord with reasonable expectations.
Incorporating all the promises, responsibilities, and duties of landlords and tenants is essential to drafting a commercial real estate lease.
What is included in a commercial lease?
The specifics of your lease will be dependent on the type of business, the type of property and several other factors. However, your lease should include the following details:
- Lease term specifying the length of time that the tenant oversees the premises
- Description of the tenant’s space
- Rent owed and scheduled rent increases
- Limitations on use of the property
- Property and renter’s insurance
- Whether improvements are permitted
- Who will be responsible for repairs to the property
Negotiating the terms of your lease
Business owners who are interested in renting a property for their business and property owners interested in leasing their commercial property to business owners can both benefit from a well-negotiated commercial lease agreement. As you negotiate the terms of your commercial lease, consider the following tips:
- Do not lose sight of your budget.
- Research the property and rent prices in the area.
- Consider the various types of commercial leases available (e.g., net lease or double net lease).
- Decide whether a short-term or long-term lease would be better for the future of your business.
Typically, the landlord will present the tenant with the lease that was drafted by their attorney. The tenant will then have the opportunity to push back on the terms offered to make sure their needs are met. If the two parties work together, they will be able to agree on terms that work best for both of them.