Commercial property lease           Home    Contact us   

What length of time should the commercial property lease be

When it comes to answering the question of what length of time should the commercial lease be for there is no right answer. A short-term lease would be for less than ten years while a longer term lease would be for any time beyond this. The decision as to what lease suits you will vary according to the circumstances of you and your business. There are advantages and disadvantages with short and long term leases and this will impact the answer as to what length of time should the commercial property lease be for.

What length of time should the commercial property lease be for? Short term



Sometimes the best lease for your business premises will be short term. If you are just starting off in business do you really want to tie yourself to something like a property lease? Many new businesses don’t last the first year and while it is good to be optimistic taking out a long-term lease on a commercial property might be a bad idea. If your business fails and you need to break the lease then this could put you in serious debt – especially if your lease doesn’t have the right ‘get out early’ clause.

Another reason why you might want a short term lease is if you just can’t predict your business needs in the future. Maybe you will need bigger premises in few years; hopefully you will. Do you really want to be stuck with a lease for a property where your business is being limited because of it? If you think that you might need bigger premises in a few years then it might be best to go for a short-term lease.

It is important to remember with any short term lease that you will often have the opportunity to renew it once you reach the end. Of course, the landlord might decide that they don’t want to continue and this is a chance you take with a short term lease.

What length of time should the commercial property lease be for? Long term



If you are an established business and want a commercial property where you can set roots then a long term lease could be the right choice. This gives you the assurance of knowing that the property is yours for x number of years. This means you can make long-term plans and really establish yourself in these premises. When a business has a long term lease it usually means they are willing to invest themselves more into the property. It may work out cheaper to choose a long-term lease but of course it may work out very expensive if you need to break the contract early.

What length of time should the commercial property lease be for? You decide



Only you will understand the needs of your business so it is up to you to decide on a short term or long term lease. There are advantages and disadvantages to both options so make sure you understand these first before choosing.


↑ Back to Top




commercial property lease

Commercial Property Lease  |  Resources  |  Site Map  |  Privacy  |  Contact Us