Commercial real estate leases are complex, and as a result, there are several potential opportunities to slip up on them.
Many tenants have signed leases that are not in their best interest, but once the agreement is signed there is little that can be done. Most mistakes can be avoided with a little bit of preparation.
Mistake #1 – Waiting Until the Last Second to Search
It may be challenging to make time to search for your next commercial space, but waiting until the last second to secure one is a recipe for disaster.
Rushing any step of the process will increase the likelihood of making a mistake with due diligence, negotiation, or finding the best space possible.
It can take a few months to a year to find the right space. If you hire a South Florida commercial real estate attorney early on, the process can be sped up significantly without risking a misstep.
Mistake #2 – Using a Standard Lease Agreement
You might feel like it will save you time and money to use a standard lease agreement, or maybe the property owner has convinced you to do so, but it’s always a mistake.
Standardized agreements may seem tempting as a cost saver, but don’t use them for something as impactful on your business as a commercial lease.
Many standardized agreements will heavily favor the landlord and will likely make you liable for anything that might go wrong in the future.
Mistake #3 – Neglecting Due Diligence
Performing adequate due diligence for a commercial real estate lease can be time consuming, but it’s an absolute must to guarantee you are making the right decision.
Whether you take care of it yourself or hire a South Florida commercial real estate lawyer to handle some of the steps, you’ll want to be thorough when it comes to due diligence.
Steps might include researching the neighborhood, ensuring the building has the proper infrastructure to for your business, environmental inspections, zoning and more.
Mistake #4 – Not Negotiating Your Lease
Just like due diligence, the time and effort you spend on lease negotiation will make a significant difference in your liability and long-term expenses.
Don’t assume that you don’t have leverage; you certainly do and can ask for reasonable terms and protections to limit your costs and liability.
This is yet another area where the advice of an attorney will prove to be highly valuable. If you are in the process of negotiating a commercial lease in South Florida, contact Schecter Law for assistance at (954) 779-7009.