Commercial real estate leasing

Pennsylvania business owners that are looking for commercial real estate to lease and property owners with available space should expect to have to negotiate their leasing terms. Due to the condition of the commercial real estate market, business owners may have the upper hand. For example, someone who owns a business park that is sparsely occupied may allow generous concessions in order to obtain a commercial tenant. However, if the commercial real estate market is thriving, or the commercial space in question is a highly sought-after space, it may be the business that is attempting to lease the space that may have to allow significant concessions.

Rent price should be carefully considered before agreeing to commercial leasing terms. A negotiation of the price may be possible depending on certain factors, such as location and market conditions.

The amount of rent is usually calculated by multiplying the price per square foot by the square feet of the space. The resulting figure is then divided by 12 to obtain the monthly cost of rent. Expenses associated with maintenance for the common areas may be included in the rental price along with additional costs. The terms of the lease will specify who will be responsible for other costs, such as repairs, utilities, taxes and insurance.

The length of the lease is another contract term that will be negotiated. A property owner may offer more attractive concessions for tenants that sign up for long-term leases. Long-term leases mean that re-leasing the property will not be necessary, and it creates a steady stream of income.

An attorney that practices commercial real estate law may protect the rights and interests of property owners during transactions related to leasing property. A lawyer may negotiate, review and draft contract terms and litigate to resolve zoning disputes.

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