Starting and expanding a business in Tennessee are two completely different, yet equally challenging, endeavors. It requires extensive legal know-how and fully informed decisiveness that is on-point. This applies to every aspect of a business, from business formation, hiring employees, entering into contracts and even finding the physical space in which to carry out the business. Knowledge and foresight is key when addressing any of these issues.
One such issue is leasing commercial property. When looking to set up, move or expand a business it is critically important to ensure that the premises on which the business is to be carried out is suited to its needs and that the costs do not eat too deeply into company profits. Some businesses choose to buy commercial property, but many other businesses choose to lease commercial property instead.
There are many terms that can be negotiated in a commercial lease, including the term of the lease, the rent and any restrictions placed on the leased property. Each of these can have a tremendous impact on a business’s operations, so they should be analyzed with a critical eye. Generally speaking, there are four types of leases. A single-net lease forces the renter to pay property taxes. A double-net lease requires the tenant to pay for both insurance and property taxes. In a triple-net lease, a renter must pay for insurance, property taxes and maintenance. Finally, under a gross lease the renter is only responsible for paying rent, leaving the landlord responsible for the rest.
Negotiating a commercial lease that fits one’s needs can be vital to the success of a business. So, too, can taking legal action when the terms of a lease are breached. An attorney who is skilled in business law and business litigation may prove beneficial to those who find themselves dealing with matters pertaining to commercial property.