Committing to a location is a major factor for business owners in Illinois. Even when someone finds the storefront that has the right foot and vehicle traffic, the wrong lease agreement can ruin the company.
Here are some things for people to keep in mind when going over the lease.
Usable square footage
According to QuickBooks, the square footage listed on the property description may not all be retail or office space. For example, the square footage may include:
- Bathrooms
- Stairwells
- Lobbies
- Hallways
- Elevators
While all these spaces have important functions, they should be deducted from the usable space when determining whether the building will be adequate.
Flexibility
Maybe a business is floundering, or perhaps the owner goes through a divorce and must sell the company. Either way, the owner needs to break the lease. Ideally, he or she could sublet the space to another company for the duration of the terms, or in the case of the sale of the company, the new owner could assume the lease. However, some landlords include terms that preclude either of these situations, which could leave a business owner in a bad situation.
Zoning issues
According to Huffington Post, it is not a good idea to take the landlord’s word for it when it comes to the appropriate zoning of the building. Before signing the lease, a business owner should check with the municipality to learn whether the building can, in fact, be used for the purpose intended, whether that is retail, industrial, agricultural or some other use.