This is how to prepare yourself for negotiations, write a letter of intent and close the lease.

Do Your Homework

Research upfront on the average square footage prices for similar commercial properties in your locality. Be familiar with the details of commercial leases. Commercial leases are generally longer than residential leases, with the average term being three to five years. It is important to understand the importance of different clauses, including the right of refusal in the case of a good deal.

Get Organized, Be Open to Help

Potential landlords may require access to your financial records, such as bank statements, tax returns, or credit information.

It may also be a good idea to consult a lawyer, a landlord-broker, and/or a commercial lease agent if you need it. They will help you navigate unfamiliar territory to ensure that you get the best deal.

Send a letter of intent

A letter of intent is often the first step to closing an office lease arrangement. This letter of intent shows that you are serious about moving forward. However, as a non-binding document, it allows you to negotiate the details of the agreement before you sign a lease. In addition, the majority of letters of intent include an exclusivity clause. This means that neither party will seek out another deal during negotiations.

The letter can be written by either the landlord or tenant or their legal representatives. It is usually one to two pages long. It includes key information such as a description of space, tenant's intended use of the property, start date, length of rental, agreed-upon renovations, timeline, rental costs, additional fees, and conditions that you can renew or cancel the agreement.

Learn How to Negotiate

Negotiation is the best way to secure the best deal. For example, you might be able to negotiate a lower rent in return for something that the landlord may value, such as a longer lease term. You may also be able to sublease the property or set a limit on rent increases.

End the Lease

To ensure that everything in the legally binding lease is correct, it's crucial to review it carefully. Professional assistance, such as a lawyer or commercial lease review agent, is invaluable at this point. You can be confident that your lease is fully covered by their guidance, including the parking space you have and common areas you use.