Congratulations, your business is growing and you either need your own workspace or you need to lease a larger space! While building your business, it is extremely important to understand all of the financial costs (such as triple net expenses) associated with your commercial leases before you sign it, especially since you may be personally responsible for your lease!
In addition to “rent”, which is generally charged monthly, you will likely be responsible for other costs generally described as “additional rent,” triple net expenses for shared business spaces (aka NNN charges), and common-area maintenance charges (CAMs). NNN and CAMs are very important to clearly understand since you will be financially responsible under your lease for your proportionate share (usually based on sq. footage of the space you rent), which can greatly increase your anticipated business expenses under your lease. Understanding how these charges are calculated, paid, and estimated during the term of your lease is critical.
Your commercial lease may be your biggest business expense and your largest long-term financial liability, so take the time to contact competent legal counsel to draft and negotiate a favorable commercial lease up front. Contact Underwood Law LLC to discuss how we can assist you so you can focus on continuing to grow your business!