Commercial Lease Checklist

When making a long-term commitment to lease space for your business, commercial real estate agents Todd Holman and Frank D’Alessandro of the D’Alessandro and Woodyard Commercial Team at Re/Max Realty Group suggest you use the following ten point checklist to compare space:

1. What type of lease is it; net, gross or full service?
2. What is the amount of the monthly CAM (Common Area Maintenance) charge?
3. Will the CAM increase and are there caps in place to protect the tenant?
4. At what percentage will the annual base rate increase? (This is known as annual rent escalation.)
5. What is the parking ratio of the location?
6. Are there special rules pertaining to parking?
7. Who are the tenants around you, and how might they affect your business?
8. Is the zoning correct for your use, and is the lease subject to Governmental approvals?
9. If you will be signing personally, what are your financial responsibilities if the business fails?
10. If you are making improvements to the property, have you negotiated options to secure the space beyond the initial term of the lease?

Readers with questions may contact Todd Holman or Frank D’Alessandro at 239-454-5820.