Leasing a space requires a very large commitment (usually 5 to 10 years) which usually requires that you personally guarantee the debt by your signature. Not only must you look at the location and realistic income expectations, but you must consider your options if things go wrong.
A lease can be written up in many ways. Typically, most commercial leases are triple net, meaning that the Tenant pays, in addition to the Rent amount, all Taxes, Insurance, and Maintenance expenses of the property attributable to that Tenant (usually pro-rated by square foot of tenant's space to the total square foot of the property).
There are many ways in which these costs are figured, reported and expensed. The net lease expenses can vary widely and may cost almost as much as the rent itself. Commercial leases are negotiable and you will have been expected to have read and understood all covenants of each lease. It is imperative that you negotiate this lease with all of the terms important to you (such as exclusivity of your business to prevent competition) and what happens when things go wrong. Who covers damages? What if your business drops off and you need to get out or move to a smaller space? Can you sub-lease? What if you are expanding and need to move to a larger space? Are you paying for other Tenant's damages or costs of evicting other Tenants in your maintenance? There are many more issues to consider and we can draft, and re-draft leases as we negotiate your lease Contract.
Call us to setup an account and have us look over your Lease Contracts.
1551 Livingston Avenue, Suite 103, Saint Paul, MN 55118. Phone: (651) 204-7152
Ronan R. Blaschko, Bankruptcy Attorney primarily serves the Dakota County, Ramsey County, Hennepin County, Washington County and Scott County areas in Minnesota, including cities Saint Paul, West St. Paul, Inver Grove Heights, Eagan, Apple Valley, Burnsville, Cottage Grove, Mendota Heights, Minnetonka, Richfield, Edina, Eden Prairie, Bloomington, Golden Valley, New Hope, Plymouth, Maplewood, Oakdale, Stillwater, Lake Elmo, Roseville, Little Canada, Minneapolis, Woodbury and Afton in in Minnesota.