maintenance , or if those fall under the landlord ’ s responsibilities . Also make sure any rental escalation clauses in the lease are reasonable and marketrelated . A good deal now doesn ’ t automatically guarantee a good deal in the future .
4 . Underestimating the importance flexibility
If there ’ s one thing we know for certain , it ’ s that nothing in life – or business – is guaranteed . With that in mind , it ’ s always a good idea to lock as much flexibility into your commercial lease as possible .
Shorter lease terms are usually less risky , giving you an earlier out if your circumstances change . If you do opt for a longer lease term – often available at a more favourable rate – make sure there ’ s a fair breakaway clause with reasonable termination processes and no overly punitive cancellation penalties .
It ’ s also worth checking if the option to scale up , scale down or sublet is on the table ,” he adds , “ as well as locking-in ‘ first right of refusal ’ at lease renewal time , if possible .
5 . Not protecting future rights
Disputes are not uncommon in commercial real estate . I encourage tenants to make sure a mediation clause is included to keep disputes out of court .
It ’ s also a good idea to include clauses protecting your business against undesirable or competing neighbours . The last thing you
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