Signing a commercial lease is a big step for any business. In Brooklyn’s busy commercial market, tenants often feel pressure to move fast. Taking time to review key lease terms before signing can help avoid disputes and surprise costs later.
Confirm zoning compliance for your business
Brooklyn zoning rules control what kinds of business activities are allowed in a commercial space. Before signing a lease, tenants should confirm that their planned use is allowed under the property’s zoning designation and any local rules. A lease that lets you move in does not mean your business use will comply with zoning.
Landlords do not always guarantee that a space fits your specific use. Confirm zoning requirements before committing to the lease
Review maintenance and repair duties
Some commercial leases shift maintenance duties to tenants through triple net or modified gross structures. These leases may require tenants to pay some or all property taxes, insurance and repair costs, depending on the lease.
The lease should clearly say which party handles structural repairs, HVAC systems and common area maintenance. Unclear repair terms often lead to disputes. Ask for written clarification before signing if anything is not clear.
Examine renewal and termination terms
Renewal options and termination clauses can affect long-term business planning. Key terms to verify include:
- Notice periods for renewal or termination
- Rent increase formulas for renewal terms
- Conditions for early lease termination
- Assignment and subletting limits
Some commercial leases also include personal guarantees, which can make business owners personally liable. Personal guarantees may remain enforceable even if the business closes or dissolves. The guarantee’s language usually controls the scope of the guarantor’s personal liability and any limits or release conditions.
What to do before signing a commercial lease
A careful lease review can help a business avoid disputes and financial risk. If you are unsure about any lease term, it may be worth having an attorney review the document before you sign.