Understanding Commercial Leases
Important things to know before you sign.
Leasing commercial space is much different from renting an apartment or condo. Not only does the commercial space house your business, but your business’ success or failure can also be affected by the terms of your lease. Before you sign anything, make sure you and your landlord agree with the basic terms including the amount of rent, the length of the contract and the configuration of the actual space.
One way commercial leases differ from the residential lease is that they are not subject to most consumer protection laws that govern residential leases. Also, most commercial leases are customized for each landlord, so you need to review them very carefully. These leases are usually long term and always binding; but, since these leases tend to be customized for each landlord, there is some flexibility and ability to negotiate. Each tenant will have special needs due to the nature of their unique businesses.
Some things to consider before you sign the bottom line are:
• Can your business afford the monthly rent? Also, what length are you comfortable signing? A five- or ten-year lease might be great to lock in a certain lease rate for a longer time. However, what if your business grows faster than you expected and you outgrow the space before the lease is up? Shorter-term leases (three- to five-year leases) with renewal options might often be a safer way to go.
• Do you need to make any changes or modifications to the space (generally call buildout)? Maybe your business needs to add offices, raise a loading dock, add data lines, or add a kitchenette. Who is going to pay for those changes or upgrades – you or the landlord? Make sure all those changes are listed, either in the lease or on an addendum, and who is paying for each item.
• What about ADA laws? Do those affect your business or the space you are considering to lease? The Americans with Disabilities Act (ADA) requires all companies that are open to the public or that employ more than 15 people must be accessible to the disabled. Again, make sure that you and your landlord agree about who is paying for any required modifications, such as adding a ramp or widening doorways to accommodate wheelchairs.
• Does your lease allow you to put signage up? Moreover, if so, are there local restrictions as to signage design and location?
• In a multi-tenant building, can the landlord lease to other businesses that are similar to yours?
• Who pays utilities and is each unit separately metered?
• What other costs are required outside of the rent?
• What insurance coverage does the landlord require you to maintain?
• Also, are there monthly CAM charges to pay? CAM charges are Common Area Maintenance charges such as landscaping, snowplowing, outside lighting, etc. that are shared by all the tenants in a building.
There are also more critical items that need to be spelled out in a lease.
You want to make sure there is a determined length of the lease (also called the lease term) - when it begins and whether there are renewal options. The rent should be in writing including any annual increases (also called escalations) and how they will be computed. So it should be established where your rent includes insurance, property taxes, and maintenance costs (called a gross lease); or whether you will be charged for these items separately (called a net lease). The security deposit should be listed and what are the conditions for returning the deposit.
One item that is often missing from a lease but it very important to understand is what is the exact space – suite number, square footage, and any common areas – that you are leasing. If any improvements are made to the space, who owns the fixtures when the lease is over? And, one significant, and a potentially expensive item, is who is responsible for maintaining and repairing the HVAC system. It is common for a tenant to have a cap on what they have to spend to maintain or repair the HVAC.
A few other considerations would be if you as the tenant have a right to assign or sublease to another tenant. You will want to make sure that any options to renew, or possibly expand your space are spelled out.
Termination and disputes are things you generally want to avoid but are still important in a lease. If a disagreement occurs, it should be decided if they are to be mediated or arbitrated instead of going to court. If you or your landlord choose to terminate the lease, details on if and how that occurs, including notice requirements and any penalties should be listed.
As you can see, a commercial lease has lots of moving parts and should be taken very seriously for you and your business.We always recommend for you to make sure all of your business advisors (attorneys, accountants, partners, etc.) have a chance to review the lease before you sign.
Michelle Masica, Real Estate Agent & Consultant
Sheakley
Welcome Sheakley
WELCOME NEW MEMBERS
Welcome to our newest members
Sheakley
1 Sheakley Way
Cincinnati, OH, 45246
(513) 771-2277
sheakley.com
Tailored HR Support, Benefits, Workers’ Comp, Managed Care and Safety Programs.
Medicare Advisors of Ohio
Welcome Medicare Advisors of Ohio
WELCOME NEW MEMBERS
Welcome to our newest members
Medicare Advisors of Ohio
198 Portage Trail Extension W #100b
Cuyahoga Falls, OH 44223
(330) 552-4111
medicareadvisorsofohio.com
We are licensed insurance professionals specializing in helping you understand Medicare. But we are more than just an insurance agency- we are your neighbors working, contributing and serving in your community.
Heath Source of Medina
Welcome Heath Source of Medina
WELCOME NEW MEMBERS
Welcome to our newest members
Heath Source of Medina
5019 Victor Drive
Medina, OH, 44256
(330) 722-7709
healthsourcechiro.com
HealthSource of Medina provides chiropractic care for the whole family. We strive to make your experience with us comfortable and personal.
St. Francis Xavier Catholic Parish
Welcome St. Francis Xavier Catholic Parish
WELCOME NEW MEMBERS
Welcome to our newest members
St. Francis Xavier Catholic Parish
606 E. Washington St.
Medina, OH, 44256
(330) 725-4968
sfxmedina.com
St. Francis Xavier Parish in Medina, Ohio, is the largest Roman Catholic parish in Medina County and serves as the spiritual home to more than 3,100 registered households and more 10,000 parishioners..
US Bank (3705 Medina Rd)
Welcome US Bank
WELCOME NEW MEMBERS
Welcome to our newest members
US Bank
3705 Medina Rd, Suite A
Medina, OH, 44256
(330) 721-0550
usbank.com
Whatever your goals – large or small – our dedicated banking team is determined to helping you make it possible.
Rev Local
Welcome RevLocal
WELCOME NEW MEMBERS
Welcome to our newest members
RevLocal
4009 Columbus Rd, 222
Granville, OH, 43023
(740) 214-1874
revlocal.com
We specialize in personalized digital marketing for local businesses, with a focus on local search, review marketing, paid advertising and social media.
TLC Animal Hospital
Welcome TLC Animal Hospital
WELCOME NEW MEMBERS
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Tender Loving Care Animal Hospital
3967 Pearl Rd PO Box 483
Medina, OH 44258
(330) 725-0241
tlcanimalhospitalmedina.com
Comprehensive pet care including vaccination services, internal medicine, surgery, radiology, dentistry & behavior consultation.
Best of the Chamber
This year’s Best of the Chamber!
YUMMY!
This year’s Best of the Chamber was a delicious adventure to say the least. Thanks to Maria Hostetler from Nagy’s Collision Centers for capturing some of the moments!
Thank you to the following participating restaurants:
Medina Creative Coffee
Gridirne Cookery
Weymouth Country Club
A Cupcake A Day
Buffalo Wild Wings
Buehler's Fresh Foods
Panera Bread
Bunker's Grill
Cocoa Gourmet Artisan Chocolates
17 Public Square
Pulp Juice and Smoothie Bar
Sandridge Food Corporation
Ravago Americas LLC
Welcome Ravago Americas LLC
WELCOME NEW MEMBERS
Welcome to our newest members
Ravago Americas LLC
25 Foundation Pl
Barberton, OH 44203
330-825-2505
ravago.com
We provide a superior distribution, resale, compounding and recycling service for plastic and elastomeric raw materials.
EmpowHER 2019
Our 7th annual women’s business conference!
empowHER
A Day in the Life of Empowher:
Empowher 2019 is in the books and it was one for the ages! We are forever grateful to our committee, our sponsors and all of our guests for making the day such a success. Thank you to Westfield’s Blair Center staff for assisting in making the day great.
The day opened with a social hour and a networking mix and mingle. Guests were tasked with locating the two other missing parts of their pattern puzzle. When located, the newly formed teams of three discussed superhuman powers, vacations and three commonalities among the group. Attendees were able to:
1. Make new connections
2. Learn something new about someone they already had met
3. Help identify super skills within other people
The lucky winners took home gift cards and cute mugs from The Book Store.
The morning speaker was Stephanie York from Hennes Communications. She provided an eye-opening and entertaining presentation on communicating effectively in times of crisis. Highlighted takeaways include; tell the truth, tell it first, tell it all and tell it fast. No matter the size of your business or the situation you find yourself in, lead with the truth and control the story. Courage in the face of crisis will have a lasting effect on the outcome of the situation.
Attendees of the event were also treated to a taste of Corporate Yoga, courtesy of Heart Song Yoga Studio. After a delicious and healthy lunch, guests were encouraged to refocus energies via yogic breathing and light stretching at their chairs. The room was perfectly quiet as hands were held over hearts for a moment of appreciation in the moment before attention was directed back to the continuing program.
With renewed focus, Retired Rear Admiral June Ryan of the U.S. Coast Guard was introduced to the stage for the closing keynote. This highly interactive session had people up and moving, testing their brain limits, and rethinking the power of positive thoughts!
Thank you to the event sponsors:
Westfield
Medina County Women’s Journal
Crystal Clinic
Cuyahoga Community College Brunswick University Center
Huntington National Bank
AI Root
Apex Dermatology
Armstrong
Eyedeal Graphics
Heartsong Yoga
Liberty Residence
Maximum Potential Chiropractic
Nature’s Touch Wellness Center
Westfield Bank
New Website Excitement
Introducing the BRAND NEW chamber website!
WELCOME
The Greater Medina Chamber of Commerce is thrilled to introduce you to our new website. It has been about 5 years since we last overhauled our site, so we were long overdue. As you navigate through the new site here are a few features we suggest you check out:
· Member Benefits page: Here you can learn how to increase your visibility, save money through a variety of savings programs, and explore opportunities to participate within the chamber.
· Events page: Never miss an opportunity to connect, learn, and grow. This section of the website will keep you informed of all upcoming Chamber activities.
· Directory: Think chamber members first. If you or someone you know needs a referral to a particular service, check our directory. Find a fellow chamber member and reach out and make a connection.
We are looking forward to many signature events in 2019 like the 7th annual EmpowHer Conference and our always sold out annual golf outing. This year, we are also pleased to present a very special business breakfast with Chris Antonettii and Paul Dolan of the Cleveland Indians. We also think you deserve a vacation, so be sure to visit the Ireland Group trip information page on the website as well.
You can expect no interruption in our always popular standing member events like Chamber Chat, Eggs & Expertise, Safety Council, Networking WOW!, monthly member lunches, Business after Business, Young Professional gatherings and more.
While you are cruising through the new site, it would be the perfect time to log into your Business Profile and make any changes necessary to your business. Has your business recently moved? Have your team members changed? Is your business description accurate? Take a minute to link your social media information to your profile while logged in.
Finally, don’t forget about posting Hot Deals and Job Postings through your account. This is a member benefit provided at no cost to you and a great way to advertise new product specials, chamber member discounts, and unique offerings.
We are grateful to Mark Hunter for his assistance and patience throughout the new website build. If you should happen to come across any errors on the site, please know they are ours and not his. We appreciate any feedback that you care to share. Never hesitate to contact the office with any questions, comments or concerns regarding your chamber membership.