Before signing a commercial property lease

Dear Property Manager:

My best friend has decided to open a preschool in the Concord, (North Carolina) area and I am considering going into a partnership with her. We have both owned our own businesses before, but never leased a space. We have looked at several locations together but haven’t made any decisions. My biggest concern is just not knowing enough about commercial leases. What do we need to do before we sign? Does Kuester have any available properties in Concord?

Thank you so much for your help.

Sheryl J. Concord, NC

Hi Sheryl,

There are several things you need to know before signing a commercial lease, yet the biggest thing is to review the lease thoroughly. Read it, review with your attorney, and ask any questions, and get clarification before committing. Below are some of the most important points:

1) Before reviewing the agreement, make sure that you are listed properly as one of the parties. Many do not look closely at this, yet it could cause a huge headache later on. Also remember, to avoid liability, if the company is a corporation or an LLC, the company name (not your personal name), should be what appears on the lease.

2) Discuss the length and rent. Note when the property owner will be raising the rent and negotiate the terms to where you & your partner feel comfortable. Just because it is written on the lease, does not mean you won’t be able to make some modifications in your negotiations.

3) Evaluate the security clause carefully and ask who is responsible for securing the premises, if there is a security system (or can one be installed), and if the landlord has access to the leased space, (and under what conditions).

Best of luck and yes, we do have properties in your area that would suit your needs well. You can find all of our commercial property listings, in Concord, Boone, Myrtle Beach, Charlotte, and Fort Mill at http://www.kuester.com/properties/. Please let us know if there is anything we can be of assistance with as you look at properties.

Property Manager
Kuester Property Management:
Serving Concord, Fort Mill, Charlotte, Myrtle Beach, & Boone