What Small Businesses Need to Know Before Signing a Commercial Lease

What Small Businesses Need to Know Before Signing a Commercial Lease

Some small business owners opt to take shortcuts regarding commercial leases only to regret their decisions in the future. This is because they fail to undertake research on laws and due diligence before signing commercial lease agreements. To avoid such issues, it is crucial to understand what commercial leases entail. Check out this blog to learn more.


A legally binding contract between a business tenant and landlord is referred to as a commercial lease. With a commercial lease, you can conduct business activity in the commercial space. This means that you agree to the terms and conditions.

What You Should Look for in a Commercial Space

Before signing a commercial lease, there are various things you have to consider about the space. Firstly, you have to assess potential customers in the location. This helps determine the rate of growth and viability of your business.

The other aspect to evaluate is the rent, security deposit, and additional costs. This plays a crucial role in ensuring that your budget resonates with the cost implications of acquiring a commercial space. Moreover, you have to go through regulations set by the authorities more so in commercial spaces. They include zoning, environmental, and nuisance laws.

Fine Details to Observe

As a small business owner, you should not fail to undertake a thorough background check on the landlord or building owners. This research will shed light on what to expect especially on financial status. The last thing you want is to be evacuated from your premises due to unpaid mortgages.

Also, you have to scrutinize the agreement for personal exposure. This implies that you are personally liable for all aspects of the commercial space. Furthermore, you have to check if there is a non-disturbance clause contained in the lease. This means that you cannot be vacated from the commercial space in case the landlord forfeits the mortgage.

Parting Shot

Commercial spaces are an integral part of ensuring that your small business is operational. If you are interested in acquiring a commercial space, feel free to contact TCF Capital.