Length of Lease

• An important aspect to look at when negotiating a rental agreement on commercial property is the length of the lease. A short-term lease of a year or two can be beneficial if you don't want to commit to a long-term contract, however, on the flip-side is that a short-term lease will likely increase after the contract ends. If your business is successful, an increase in rent can have a negative financial impact. When negotiating the rental period, you should carefully consider how long you want to lease the property. Then, you may want to negotiate on-going terms. For example, you may agree to two years and also add to the contract that you have the option for five more years at the same or nearly the same rent. When the economy is doing well, you have less chance of negotiating terms such as this. Any lease that you sign should definitely be reviewed by an attorney or person experienced in negotiating contracts.
  
  

Business Size

• A small business has traditionally been less attractive to commercial property owners. The property owner prefers a larger company to lease the property because it adds some assurances that the building will remain leased for a longer time. However, as companies downsize and larger companies stop expanding, smaller businesses have a better opportunity to acquire a good lease. This opens up opportunities that may not have been available before for small businesses. If you carefully research the location you want, you may find a rental deal that might not have been offered in the past.
  
  

Negotiate

• When a commercial property owner gives you a price for rent, don't be afraid to negotiate, especially if the property has been empty for a time. If the property isn't rented, the owner isn't making any money and very likely has to make mortgage payments on the property. The monthly rental is not the only thing you should negotiate. Other ideas to consider are build-out costs, signage, parking, utilities such as water and garbage. You may be able to negotiate additional monthly savings and some perks that won't cost you any additional money.
  
  

Research

• You will need to research many details before deciding on a business and renting a lease space. In particular, it is important to research the commercial property holder. You need to consider that the property owner may be in financial difficulties. You must verify that the property owner is making mortgage payments. Consider that you invest your money into a space, you make improvements, purchase shelving and stock your store only to have a bank foreclose on the property because the property owner is in default. At a minimum you should run a credit check on the property owner to verify he isn't in financial trouble.