1. Evaluate your company's needs


Before you start negotiating, take the time to assess your company's current and future space needs. Ask yourself these questions

How much space do you need to operate? Do you plan to grow in the short or medium term? How much can you afford to spend on rent? What are the best strategic locations for your business?

If your short-term needs are uncertain, consider signing a shorter lease (e.g., two or three years) to maintain flexibility.

 

2. Always consult a lawyer


An attorney who specializes in commercial law is essential when reviewing lease clauses. Commercial leases are often complex and mistakes can be very costly. Choose an expert who is familiar with the specifics of commercial leases to identify any risky clauses or hidden costs.


3. Understand your costs


Take a close look at the utilities included in the lease. These may include fees such as property taxes, common area maintenance, or insurance. Make sure the total cost is in line with your budget, and don't hesitate to ask for adjustments if necessary. Anticipate future rent or fee increases to avoid surprises.


4. Understand leasing options


The different types of leases can have a significant impact on your costs:

Gross lease: A single amount covers the base rent and all utilities (utilities, taxes, maintenance, etc.). Modified Gross Lease: Costs are split between landlord and tenant. Net lease (single, double or triple): You pay certain costs directly, such as property taxes, insurance or utilities. Percentage lease: A base rent plus a percentage of your gross sales above a certain threshold.

Always check the details of your out-of-pocket expenses to avoid misunderstandings.


5. Check market rents


Find out what the market rents are in the area you're considering. A commercial real estate agent can provide you with accurate market rates. If the landlord's rent is higher than average, use this information to negotiate a better rate.


6. Research the property


Gather useful information about the building and its surroundings:

Compatibility of other tenants with your business. Availability and use of parking. Reputation of the owner or management company.

If potential problems arise (insufficient traffic, parking problems, etc.), use these elements to negotiate more favorable lease terms.


7. Ask for incentives


Don't hesitate to ask for additional benefits:

Free rent periods (two or three months are common). Landlord contribution to improvements. Staggered financing for renovations.

These incentives can make a significant difference in your initial costs.


8. Review termination terms


Make sure you understand the terms of your lease:

Can you be evicted for nonpayment? What happens if the landlord sells the building?

Look for early-out or lease transfer clauses that could be useful if your business changes.


Bottom line

Successful lease negotiations are based on careful preparation and a thorough understanding of the proposed terms. By surrounding yourself with competent professionals and paying attention to every detail, you'll maximize your chances of getting a deal that meets your needs and budget. Take the time to analyze all your options before signing to make your commercial lease an asset to your business.