year end is good time to review your lease

When the year is ending and you are reviewing your financials for your business don't forget to review your current lease.

Here are some key elements to look at.
When does your lease expire? It may be sooner than you think. It is never too early to think about renewing or even changing your location. Many leases require a 60 to 90 day notice that you do not intend to renew, or that it goes to a month to month. That may make you vulnerable to having the landlord lease to someone else.

Is the space adequate? You may need to expand or even get a bit smaller and more efficient. Possibly a more or less visible location is needed. Maybe a loading dock or being near public transportation and linkages is crucial to your business.

What will be the new lease rate? Are there built in escalators each year that will be activated. Are you responsible for a portion of the real estate taxes, insurance and common area expenses. What or how much will they be. Are you paying the correct amounts or being over charged or under charged. Can you ad then to your rental rate and pay them off monthly.

Finally, do the payments fit your budget. Can your business make a profit at this location. If it is tight , you may want to talk with your landlord or your commercial real estate agent on these key areas before a small problem becomes a large one.