When you choose a commercial space to lease for your Arizona business, you want to make sure it protects you as well as it does your landlord. However, many tenants in Scottsdale and other communities do not know when a commercial lease offers poor tenant protections.
Learning how to spot potential problems in commercial real estate leases can save you from an unfair arrangement. In turn, you can feel more confident about the lease agreements you sign now and in the future.
4 signs that your lease may not protect you
Before signing your next commercial real estate lease, look for the red flags discussed in the following sections. If you see any of these, consider asking an advocate to review your documents or look elsewhere for your property.
- Vague tenant/landlord responsibilities. Solid commercial leases include detailed information about the responsibilities of all signing parties. Avoid committing to a lease without these details.
- No analytical information. Most professional commercial landlords offer prospective tenants demographic and analytical data to help them decide if the location meets their needs. If your lease documents do not contain analytical data, ask the property owner for more details.
- Few listed landlord obligations. Good landlords understand that they must give to receive. Make sure your lease contains a comprehensive list of your landlord’s lease obligations.
- Unprofessional documents. In a legitimate commercial real estate transaction, the documents you receive will be error-free and well written. If the lease documents contain typos, omissions or other problems, think twice before you sign.
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