Commercial Lease Application

Evaluate the Length of the Lease. Research Comparable Rents. Look for Hidden Costs. Ask for Favorable Clauses. Check the Termination Clause Closely.

Bank references. Current credit reports/scores from all three reporting bureaus. Previous/current landlord references (for an existing business moving to a new location) Personal and corporate financial statement(s) A copy of your business plan. Business bank statement(s) Prior tax returns.

The Letter of Intent should include the names of the parties negotiating, such as the name of the Tenant and the Property Owner/Landlord, and a list of industry standard list items. You should also include items that are important to your business when leasing commercial real estate.

Commercial leases generally fall into one of three major categories based on how the building's operating expenses are passed on to tenants: Gross or full-service lease. You pay a flat monthly rate from which the landlord pays all operating expenses, including utilities, property taxes and maintenance.

The process for retailers qualifying for a commercial lease can vary from landlord to landlord. Landlords consider several factors including tenant mix, personal credit history of the owner, company balance sheet, profit and loss statements, open credit lines, and growth projections.

The Person Liable for the Lease. Your Business Structure. How Long You Have Been in Business. The Nature of Your Business. Contact Information. Your Proposed Terms (or, Counter Offer) The Length of the Lease. Condition of the Property.

Conduct a Risk Assessment. You will likely have some first impressions of the potential tenants that come your way, but it's important not to let your emotions interfere with the tenant selection process. Use Tools to Screen Commercial Tenants. Evaluate Potential Tenants' Lease Terms. Check for Multiple Guarantors.

A security deposit is typically an amount equivalent to one or two month's rent, which is deposited by the tenant to secure, as far as money can, the tenant's performance of the tenant's obligations under the Lease.

Every commercial tenant doesn't necessarily need a sterling credit history to lease space from you. But it's good to know what you're getting into ahead of time. Assessing credit helps you know when to add appropriate protections into a tenant's lease agreement.