You’re weeks from signing the lease and becoming a proud tenant in a beautiful commercial property in Macomb County, MI. Butyou’re more than a little uncertain!
While most of the issues have been ironed out, you still don’t know what to do about some smaller details, like repairs, alterations and assignments!
Not to worry, though!
To address all your concerns, we asked our resident real estate agents at Macomb Commercial Real Estate to guide youthrough the process.
Commonly Asked Questions
Q.1: Who Pays for Commercial Property Repairs?
Typically, the landlord pays for any repairs that need to be made to the commercial property. But there are exceptions.
For example, your landlord needs to repair fundamental issues that affect the property’s value, such as plumbing, heating, electrical faults, pest problems, as well as damaged appliances.
But they will not be responsible for damages that are cosmetic, like dripping faucets, small holes in the wall, or stained rugs.
Q.2: Can I Assign My Lease in the Future?
It depends on how well you negotiate your lease. Landlords have the right to terminate your lease if you ask for an assignment, i.e., the right to give someone else your lease if you sell your business.
But if you think your business’s location will play a major role in its value, make a request to your landlord, asking them to remove the provision so it doesn’t end up affecting a future sale.
Q.3: Can You Make Alterations to a Leased Commercial Property?
You can, but only if things have been cleared out with the landlord first.
Most landlords add restrictions to their leases to ensure that tenants do not make any structural alterations to the property.
If you plan to make alterations, your landlord has the final say on what alterations will be permissible. Hash out the details before you sign the contract so there’s no issue with your lease in the future.
Q.4: Can I Buy the Commercial Space One Day?
Given that the commercial real estate industry is quite lucrative, your landlord could sell their property for the right price.
However, if you do have the budget, it a much better option tosearch for another property in the area or a competing site, rather than ask for a property that’s leased. This will allow you to get a better deal.