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Don’t Sign Commercial Lease Agreement Blindly! Pay Attention to These Factors First.

HomeEducationalDon’t Sign Commercial Lease Agreement Blindly! Pay Attention to These Factors First.

Leasing commercial space differs from renting residential property. Whether you are searching for office, retail, or any factor premise for your business, commercial properties have their issues that have to be addressed beforehand. Only with a properly drafted lease you can run and grow the business effectively without unreasonable restrictions or interruptions from the property owner. Well drafted and negotiated commercial lease also helps to avoid any litigation.

1# Monthly Rent

The details surrounding the rent payments are essential when you are creating a free Colorado commercial lease agreement. Space may need to be renovated to fit the need of your business. Ask the owner whether he will provide the grace period to get the renovations done, after which the rent starts to be levied. Another question about the rent is how long should you continue to pay the rent once the lease ends. Find out whether you are required to remove the changes to the building and restore the property at the end of the lease. If that work takes longer than the lease term, you should clarify whether you should pay the rent until the restoration work is complete. Find out how the rent is charged. If additional charges may be included in the rent, like property insurance, find about it. You should be clear how much you are paying every month and for what.

2# Be Clear About Tenant Improvements

While you may want the tenant improvements done, but you should negotiate them before committing to any lease. It is crucial to ensure that you don’t get stuck with space that you can’t use properly. You should be clear about the building’s condition to lease, the kind of improvements the tenant will make to the building and how far a tenant can make the improvements. Whether the landlord will pay for the improvements if it causes an increase in property value.

3# Making Alterations During Lease Period

Most commercial leases are long term leases spanning from five to ten years or more. With time business grows or changes, and further changes may be required in the property. It would help if you discussed making these changes at the start of signing the lease so that there are minimal issues later on. So, be sure and discuss these issues that need the approval of the landlord. Some standard for approval is also required so that the landlord can’t withhold approval of alteration required for the business.

4# End of Lease Term or Premature Surrender of Lease

It is essential to be clear about the state of the building before moving in. It is also essential to determine which alterations or improvements to the building must be removed and restored when you move out. Depending on the kind of improvements required, it may need a long process of restorations with the landlord. Hence, the commercial lease you sign must have provisions for approving and completing the pre-move-out restoration work. The tenant has to ensure that you are not obligated to make the repairs due to ordinary wear and tear’. The tenant is also not liable to make renovations meant to make the property ‘market ready’ for the next tenant.

5# Insurance of Property

You should be clear about who is obligate to maintain the insurance required for the property. The landlord will often keep a property insurance policy and expect the tenant to bear the costs.


These factors, along with landlord accessibility during the end of the lease, must be considered while drafting the Free Colorado Commercial Lease Agreement on any legal forms site.

pearls of wisdom
Carlos Davis
Carlos Davis
You need to have an electronic, digital or physical copy of the essential documents to present as and when required. Forms Legal LLC makes this process easy for you as you can create, print and download customized legal documents, contracts and forms on the cloud by signing up on its site free of charge. You can view and interact with PDFs as well as store and access your documents anytime, anywhere.


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