SOMA Living May 2023

REAL ESTATE FOR YOUR BUSINESS

Thinking of starting your own business in a retail store, office or warehouse? Moving to a new location or extending the lease in your current space? Here are three of the most important terms to address during your commercial lease negotiations: 1. Term: Lease terms vary in length, depending on the type of business, location, use and market conditions. Confirm that you’re comfortable with the number of years of your lease and plan for contingencies in case your business changes. For example, would you like the right to expand into the neighboring space if that tenant moves out? Can you assign the lease or sublet the space if your needs change? It’s important to think about the possible scenarios when making your offer to a potential landlord. 2.Rent and Additional Rent: To properly budget your expenses, confirm your fixed rent amount and note what it includes. Are utilities included or billed? Landlords often charge “additional rent,” which may include tenant’s share of common area expenses (in retail leases), or portions of the landlord’s annual real estate tax payments (in office leases). 3. Personal Guaranty: Most landlords want a business owner to personally guaranty all of the tenant’s obligations (monetary and otherwise) under the lease for the entire term of the lease. Instead of giving a full guaranty, try to provide a “Good Guy Guaranty.” It’s still a personal guaranty, but it caps your personal liability to the rent owed on the date your business surrenders the space and gives the keys back to the landlord. In most cases, landlords ask for 3-6 months written notice. When hiring an attorney to review and negotiate your lease, make sure the attorney is well-versed in the subtleties of commercial leasing. Leases last many years and have language that could create long term consequences for your business. You want to make sure that you are protected for the life of the lease.

“Play gives children a chance to practice what they are learning” - Fred Rogers

For more information or to schedule a tour, please email chicks@morrowpreschool.org or call (973) 763-5460 Limited Space remain for our 2.5, 3/4 multi age and Pre-K 5 programs for the 2023-2024 school year. Join the Morrow Family! Play-based Preschool for 2.5 to 5 year olds.

Toddler Playdate and Story time Drop in Fridays 10:45-11:45 am 18 months-2.5 years old

4/28 5/5 5/12 5/19 5/26

600 Ridgewood Rd • Maplewood, NJ 07040 www.morrowpreschool.org

Monica Schroer Hafif C: 917-533-9741 E: monica.s.hafif@mintzermauch.com www.mintzermauch.com

“Monica Hafif is a commercial real estate attorney who loves helping her clients realize their business goals. She lives in South Orange with her husband, two kids and a menagerie of pets.”

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