Signing a commercial lease is a major decision, and reviewing the details carefully can help avoid costly surprises. The Amarillo market offers a range of leasing options, so understanding key terms can put you in a strong negotiating position. Here’s what to keep in mind:

1. Lease Length and Renewal Terms

• Check the initial lease duration and any renewal conditions.
• See if renewal terms are pre-negotiated or flexible.
• Make sure the agreement allows room for business growth or changes.

2. Rent Structure and Additional Costs

• Identify whether the lease is gross, net, or triple-net (NNN).
• Clarify who covers property taxes, insurance, and upkeep.
• Understand potential rent increases and how they’re determined.

3. Common Area Maintenance (CAM) Fees

• Review what CAM fees include and how they are allocated.
• Ask for past CAM fee records to anticipate future costs.
• Ensure there’s transparency in fee calculations.

4. Zoning and Business Use Restrictions

• Confirm that the space meets zoning requirements for your business.
• Check for limitations on signage, renovations, or operational hours.
• Look for exclusivity clauses that prevent direct competition.

5. Improvements and Customization

• Find out if the landlord offers a tenant improvement (TI) allowance.
• Determine who is responsible for construction costs and permits.
• Ensure that project timelines align with your business plans.

6. Responsibilities for Maintenance and Repairs

• Clarify maintenance responsibilities for HVAC, plumbing, and electrical.
• Determine if repairs fall under the tenant’s or landlord’s obligations.
• Look for any hidden upkeep fees.

7. Subleasing and Assignment Options

• Ask if subleasing or transferring the lease is allowed.
• Negotiate flexibility in case your business needs to move or downsize.
• Understand any required approval processes and associated fees.

8. Parking and Accessibility Considerations

• Verify available parking and any restrictions.
• Ensure compliance with accessibility laws.
• Check if parking is shared or designated.

9. Exit Strategies and Early Termination

• Look for termination clauses that allow early exit under certain conditions.
• Negotiate fair penalties if you need to break the lease.

10. Professional Guidance

• Work with a commercial real estate agent familiar with Amarillo’s market.
• Remember that many lease terms can be adjusted through negotiation.

Final Thoughts

A well-negotiated lease helps protect your business from unnecessary costs and restrictions. By carefully reviewing these factors, you can secure a lease that supports your long-term success. Seeking expert advice can provide additional peace of mind throughout the process. Contact us today for all your real estate needs!

 

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as financial, legal, or real estate advice. Every real estate transaction is unique, and readers are encouraged to seek professional advice tailored to their individual circumstances. We strive to keep the information accurate and up-to-date, but we make no warranties or guarantees regarding the completeness, accuracy, or reliability of the content. For specific guidance, please consult a licensed real estate professional or legal advisor.