Closing the deal on a commercial real estate property can be a huge step forward for your business. There are exciting opportunities ahead, but you should not let that blind you to the necessity of carefully checking over a lease before signing it.
There are a number of issues that might be present in your commercial lease that can severely complicate the transaction. If neither you nor your landlord properly addresses these issues, you risk a heated dispute down the road that might even result in eviction.
1. Faulty property valuations
The value of a commercial property stems from its size, location and overall ability to generate revenue. If it seems as though the landlord’s valuation of the property is inaccurate, you might decide to seek an additional valuation of your own to preemptively clear away a potential complication.
2. Unmet inspection requirements
It is important to conduct a thorough inspection of the property and any structures upon it before signing any contracts. Consider working with an inspector and surveyor yourself even if the landlord provides recent inspection documents. You can also contact the New York State Department of Environmental Conservation to receive assistance with environmental testing.
3. Vague liability
A commercial lease should clearly outline the liabilities you will assume as the lessee. If your lease provides bague phrasing regarding tax obligations or other legal responsibilities, it is likely that a dispute will eventually arise.
If complicating factors in your commercial lease do come to light, you may need to seek legal action to fully resolve the issue before it becomes a much more costly matter.