Buying a business? Download this free guide to help you negotiate key terms like price, stock, and employee entitlements.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n A commercial lease is where a commercial tenant occupies a commercial landlord’s property for their business\u2019s purpose. Essentially, the property becomes your commercial premises. Moreover, under a commercial lease, your landlord grants you the sole occupation of the property in return for the rent you pay them.<\/p>\n\n\n\n There are many terms and conditions within a commercial lease, which set out both parties\u2019 rights and responsibilities. Furthermore, the lease is a legally binding contract. Therefore, there will be legal consequences if you fail to fulfil your duties. <\/p>\n\n\n\n One of the terms with your commercial lease will outline the lease term. The lease term is the duration of the lease, essentially the time you commit to occupying your business premises.<\/p>\n<\/div>\n\n\n\n A commercial lease can have a lease term of anything from 1 day to up to 99 years. However, for a commercial lease, the standard timeframe for the lease term is between 1 and 25 years. Whilst short-term leases are very common for commercial leases, some businesses opt for long-term ones. There are reasons why they may prefer a long lease term. We detail some of these below.<\/p>\n\n\n\n A long lease term can provide stability for your business. For instance, this may suit you if you wish your business to grow.<\/p>\n\n\n\n If the prospect of committing to a lease for a long period makes you nervous, there are some points you could negotiate with your landlord. You may ask them to consider the inclusion of a break clause to give you the option of termination<\/a> before the lease term ends. Long-term leases often have a break option at natural phases, meaning you can terminate the agreement if you pay a set fee. Alternatively, your landlord may agree to permit you to assign the lease to end your obligations under it, transferring these to a third party.<\/p>\n\n\n\n If you decide on a long lease term, you will likely be able to negotiate better lease terms with your commercial landlord than if you sign a short-term lease. This is because your commercial landlord has guaranteed tenants for an extended period, leaving no breaks where their property may be vacant in search of new tenants. <\/p>\n\n\n\n For example, you may seek:<\/p>\n <\/p>\n <\/p>\n<\/div>\n\n\n\n With a long lease term, you know you will likely remain in the same commercial premises. Therefore, you know your rental costs for an extended period, so you can budget accordingly and financially plan for your business. <\/p>\n\n\n\n However, you should note that your rent may change<\/a> if your commercial lease has a rent review clause. This grants your landlord the right to periodically assess the amount of rent you pay and potentially raise this. <\/p>\n\n\n\n As a business owner, you may prefer a longer term because your business needs one. For example, if your business is in retail, a long-term lease will enable you to build goodwill around your premises over time.<\/p>\n\n\n\n Furthermore, if you need to install machinery or a fixed plant for your business, it makes sense once doing so to stay put in the commercial premises. However, if you wish to install equipment in your business premises, you should check the terms of your commercial lease regarding alterations. You should also know the rules around fixtures and fittings in commercial leases. The machinery will likely be a \u2018tenant\u2019s fixture\u2019 and will remain yours when you leave the premises. Although, you must remove it before the lease term ends, or it could become your landlord\u2019s. <\/p>\n\n\n\n Additionally, if removal could cause damage to the commercial premises, you may not be allowed to remove it.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nA Commercial Lease <\/h2>\n\n\n\n
What is a Lease Term? <\/h2>\n\n\n\n
Stability<\/h3>\n\n\n\n
Better Lease Terms<\/h3>\n\n\n\n
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Precise Budget Planning<\/h3>\n\n\n\n
Specific Business Type<\/h3>\n\n\n\n
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\n Buying a Business: Guide to Negotiating Terms<\/div>\n
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