Help with my first commercial lease

1 Reply

Hey BP Nation,

A friend of mine reached out to me and want me to represent him as his real estate agent when trying to rent a suite in a brand new commercial neighborhood mall. He is a doctor and wants to start his own clinic, and has found a location he is interested in. I have talked to my friend and asked him how long he plans to stay there for, he is ok to start off with a 5 year lease with options for another 5 years, but mentioned that if possible, he would not mind consider a shorter lease as long as the price stay the same as the 5 year lease. 

I have never done a commercial lease transaction before, and am therefore reaching out to your brains and knowledge. 

I am going to call the landlord's agent and ask him about more information. What questions should I prepare for the call?

So far, I am planning to ask the agent these questions:

  • 1.What Type of Commercial Lease is Being Offered?
  • 2.We are interested in around 1500 sqft.
  • 3.How much will rent be per sqft?
  • 4.What is the minimum years of the lease contract for this price?
  • 5.What services are included in the CAM fee?
  • 6.What fees are subject to the lease?
  • 7.How much will the landlord put in as finishing costs for a doctor clinic?
  • 8.Are the Terms of the Commercial Lease Negotiable?
  • 9.What Insurance Coverage Does the Lease Require?

Am I missing any important questions?

Looking forward to your replies!

Signage restrictions would be a good question (color, size, etc). 

Notice requirement for either party to end lease

I would also ask for about 90 day notice on rent increases so the doctor can plan accordingly. 

Otherwise I think you have a very good base of starter questions. 

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