How to Turn Your Lease into a Shield

A lease isn’t just about securing a space! If you focus on that alone, your business could incur significant costs. Negotiating a lease is an essential part of your overall business planning process. The right lease terms help you manage risk, increase your flexibility and options as your business grows and thrives, and even help provide a buffer if business falls off for a time.

It’s important that your lease includes clauses that will protect your business and your investment. Here are some important protection clauses to consider:

Exclusivity — An exclusivity clause will ensure that your landlord doesn’t lease nearby properties to a competitor. Make sure your language is precise because a loophole allowing a competitor to slip in could spell major trouble for your business.
Assignment and subletting — You probably aren’t thinking about it now, but sometimes circumstances force tenants to prematurely vacate their lease. Make sure you have as much flexibility as possible should this happen.
Renewal options — Although you should only ever use a renewal option as a last resort, it’s important to have one just in case. If your location is particularly important or your business is difficult to move, this backup plan can protect you in a worst-case scenario.
Co-tenancy — If an anchor tenant closes or moves, it can be devastating to nearby businesses. Ensuring that your landlord will either replace the business or allow you to break your lease can save you from being trapped in an empty shopping center.

These kinds of clauses can save you in a pinch, but depending on what type of business (and what type of property) you have, you might need more or different clauses to adequately protect yourself. A tenant broker has the experience and the knowledge to help you negotiate a lease that covers all your bases.

Want the assistance of a commercial real estate expert when negotiating your terms? For more information about leasing commercial space in NYC, contact Manhattan Commercial Realty by phone at 212-624-9224, by email, or online.