While some businesses own their headquarters outright, leasing is a popular route. Leasing allows your business to have physical premises without the substantial initial investment of buying.
Nonetheless, leasing commercial property is still a significant investment that requires thorough due diligence. Below are some important factors to remember.
The terms of the lease
Commercial leases vary widely, so it’s crucial to read and understand all provisions before signing. This includes the rent structure, additional expenses (such as maintenance fees and property taxes), lease duration and renewal options.
Zoning restrictions
Before committing to a lease, you should verify that the property is properly zoned for your intended business. Connecticut municipalities enforce zoning regulations that may restrict certain business activities. You can check zoning laws through the local planning and zoning department to avoid potential legal issues. Additionally, confirm whether any restrictive covenants or local ordinances impact your operations.
Repair responsibilities
A common mistake tenants make is assuming landlords handle all property maintenance. Many commercial leases place repair and maintenance responsibilities on tenants, especially for HVAC systems, plumbing and structural repairs. Ensure these obligations are clearly outlined, and negotiate terms that align with your business’s budget and capacity.
Commercial leases are legally binding. It is not always easy to free yourself from these agreements, even if you are unhappy with the terms. This is why it’s so important to conduct due diligence before signing.
Having as much legal information as possible will help you make the right decision for your company. You may also find it beneficial to seek some further guidance.