5 Factors To Help Your Business Get a Favorable Commercial Lease Agreement

Get The Possible Lease Terms That Will Help Your Business Goals Succeed

If your business is looking to lease a building and/or property, you’ll naturally want to find a suitable structure with a good location, sufficient parking, the flexibility to make any necessary improvements, adequate electric and other utilities for your needs, and much more. Because a lease for commercial property is a contract, you’ll want to carefully discuss all of the terms with your potential new landlord and make sure that the property meets all of the terms that your business needs. Business owners can review their potential lease with their Arizona commercial real estate attorney to verify all of the terms before agreeing. The last thing you want is to discover that you’ve signed an expensive, long-term lease with a major disadvantage that won’t work well for your business.

Getting a commercial lease agreement in Arizona

In order to get a favorable commercial lease agreement for your business, it’s important to ask plenty of questions, examine the property thoroughly, and get legal advice before you sign on the dotted line. In most cases, commercial lease terms are negotiable. If the terms are not flexible or negotiable, it may be best to look elsewhere for a building for lease. It’s important to have a good working relationship with the landlord and to only consider commercial properties that are a good fit for your business. Consider these 5 factors to help your business get the possible lease terms that will help your business goals succeed:

Property Description

Your potential commercial lease must clearly define the property that is available under the lease. If you will be leasing an entire building, the contract clause may only give the street address. However, if you are looking to lease only one area of the building, you’ll need to precisely define which areas of the building will be under your management. For example, is there a storage area, utility room, or break room you would like your employees to be able to access? What is the restroom situation? Be sure to consider where your employees and customers will park and describe how you will get to the area of the building that you will be leasing. Carefully discuss the property description with your Peoria business attorney to make sure everything is in good order with no confusion.

Premise Use Clause

This clause of your commercial lease contract will define exactly which activities your business can conduct on the premises. Use clauses are intended to protect the property from damage or inappropriate usage, and also limit the property owner’s liability. While the use clause can also protect your business, it also means that you will need to renegotiate the terms of your lease if your business changes direction or needs to utilize the space differently in the future. Your Chandler commercial real estate attorney may recommend that the use clause remain as flexible as possible so that you will not experience delays or hang ups for contract negotiation if circumstances change in the future.

Property Improvements

It’s rare to find a commercial building for lease that will not need at least some modifications in order to be a perfect fit for your business. If you know that property improvements will be needed before your business can utilize the property, or think you may need them in the future as your business grows, be sure to discuss property improvements in your negotiations, and include in writing in your lease agreement who will be paying for any necessary property improvements that are determined to be necessary.

Additional Signage

Like most businesses, it’s likely that you will want to have a clear and visible sign from the street. Even if customers will not be coming to your building, you’ll probably still want a sign as part of your marketing and brand recognition plan. Check with your Gilbert commercial real estate attorney to verify that your commercial lease does not prohibit or limit signage in a way that will not work well for your business. If signage is allowed, be sure to research how other tenants in the area have set up their signs and make sure there is enough space to accommodate the signage that you want to have installed.

Property Exclusivity

If customers or clients will be coming to your building, you’ll probably want to try to negotiate an exclusivity clause in your lease. This clause will prevent the property owner from renting out other space in the same building or complex to a competing business, keeping your customer base strong and reducing competition.

Get Expert Legal Advice on Your Commercial Building Lease

Before you sign a lease, get the perspective of an experienced Scottsdale commercial real estate attorney who has decades of experience representing parties on both sides of real estate and building lease contracts. The trusted lawyers at Denton Peterson Dunn have the expertise you need for structuring and negotiating commercial leases so your business can get the terms you need for success. Schedule your free, confidential consultation with our legal team today!


Brad Denton, Business Lawyer
 – Denton Peterson Dunn

1930 N Arboleda #200
Mesa, AZ 85213

Office: 480-660-3249
Email: [email protected]
Website: https://arizonabusinesslawyeraz.com

7272 E Indian School Rd #540-132
Scottsdale, AZ 85251

Phone: 480-690-3283
Email: [email protected]