Details can be weighty when renting commercial space By Finance New Mexico
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enti ng a com mercial space is a move many entrepreneurs postpone as long as they can, because it’s one of the biggest expenses and most consequential commitments a startup or young company faces. A commercial lease binds landlord and tenant to a variety of promises. A well-executed lease can benefit both parties, but a hasty, vague arrangement can break an embryonic enterprise.
COMMERCIAL V. RESIDENTIAL LEASES When someone rents an apartment or home, consumer protection laws dictate many terms of the landlord-tenant contract. Not so with commercial leases, which have few of the privacy protections and other regulations afforded residential rentals. A renter rarely performs a radical makeover on a new
home, but commercial renters often need to customize a space to accommodate offices, retail operations or assembly lines. Because they’re tailored to meet the business’s requirements while respecting the owner’s property rights, commercial leases are negotiated from scratch. This lack of standardization means business owners and landlords need to exercise due diligence before signing a contract that can bind them for years.
COMING TO TERMS The renter’s monthly payment must be affordable, and the contract should state what that payment covers. Some landlords include the cost of property insurance and taxes, utilities and maintenance in a commercial lease, while others bill tenants separately for these expenses. In the latter case, the landlord should explain how these costs are calculated. The amount and frequency of rent increases, or escalations, should be addressed:
Some landlords specify dollar amounts, while others tie hikes to an objective yardstick like the Consumer Price Index. The lease term needs to be long enough to provide stability but shor t enough to free the business if it outgrows the space or finds it unworkable. The contract should list all necessary improvements to the commercial space and identify who’s responsible for doing and paying for buildouts and who owns permanent fixtures when the business leaves. If renovations are required to make the space accessible to disabled customers or workers, the contract should state what they are and who pays the bill. The contract also needs language that clarifies: • T h a t t he i nc om i n g bu si nes s i s compat ible with the property’s zoning classification. • Who’s responsible for maintenance and repairs of the grounds, building and important systems, such as heating, air conditioning and ventilation.
• What common areas, such as lobbies, restrooms and meeting rooms, are part of the rented space. • Speci f icat ion s a nd allowances for exterior signs designed to attract customers. • The security deposit amount and provisions for its return. • The tenant’s right to sublease and procedures for terminating the contract. • The consequences of defaulting on a lease and the tenant’s options to renegotiate contract provisions. A commercial real estate broker can help business owners understand and negotiate the details of a lease. An
experienced broker can also assist with property search. One of the most important functions a commercial broker can perform is helping to identify the best location for a business — especially if the business is in retail. Defaulting on a lease can be catastrophic for a business and costly for a landlord, which is why both should review the lease carefully and consult a commercial real estate attorney before signing. F in a n c e Ne w Me x i c o assists individuals and businesses with obtaining skills and funding resources for their business or idea. www. FinanceNewMexico.org.
Immigrant Youth and Allies To Dear members of the March On National Day of Action Plateau Sciences Society By United We Dream
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LBUQUERQUE – Immigrant youth from all across the state, together with hundreds of community members, people of faith and labor advocates, will rally and march beginning at the corner of MLK Jr. Ave. and University Blvd. on a national day of action to prevent deport at ion s by preser v i ng the Deferred Action for Childhood Arrivals (DACA) program which currently protects three quarters of a million young immigrants and provides stability for their families, and winning local policy changes at the state and city level as well as creating sanctuary spaces in churches and schools to protect immigrants and refugees.
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In nearly 50 cities across the country, immigrants and people of conscience of all backgrounds will raise their voice to declare that they will stand in the way of deportations, racial profiling, criminalization and hatred. We are #HereToStay and will not be moved. The march culminates at Civic Plaza, where community members, immigrant youth, and allies will mount support in favor of a sanctuary policies that publicly supports DACA and outlines protections for the immigrant and refugee community ahead of a Trump administration. Who: NM Dream Team; including its 7 chapters from across New Mexico, United We Dream and community members wearing orange #HereToStay shirts What: Rally and March
Friday January 13, 2017 • Gallup Sun
in honor of Martin Luther King’s Legacy and in preparation for the upcoming Trump’s administration. W h e r e : 10 a m University of New Mexico; at the corner of MLK Jr. Ave. and University Blvd. C u l m i n a t io n : Albuquerque’s Civic Plaza Visu a ls: Immigra nt Youth and Allies holding #HereToStay posters, banners and orange shirts declaring the immigrant community is #HereToStay. program which currently protects three quarters of a million young immigrants and provides stability for their families, and winning local policy changes at the state and city level as well as creating sanctuary spaces in churches and schools to protect immigrants and refugees.
By Martin Link
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happy New Year to all our members, and as we enter 2017, hopefully everyone is in good health and full of energy. Our December meeting/ Christmas party was well attended and we had more than enough to eat. Special recognition was paid to longtime member Martha Zollinger, who, at 94, was just as spry as ever! Our January meeting is scheduled for Sunday, January 15, at the Red Mesa Center, 105 W. Hill Street. The program will start at 2:30 p.m. and will take on a different format this month. We have scheduled a round table discussion focusing on our commitment to engage in the preservation of old Fort Wingate. All the members who took photos of the old
buildings last October are encouraged to bring them. Invited guests who will attend include Jennifer Lazarz, the newly-appointed Gallup tourism director and Rose Eason, the ArtsCrawl director. Also invited is Sharon Pinto, Regional Dir. of the Bureau of Indian Affairs, and Scott Merrill, owner of the Ft. Wingate Tdg. Post. Retired Col. David deBaca might show up. too. Martin will also give a report on THATCamp, sponsored by the N.M. Humanities Cou ncil, that he attended on Saturday, in Albuquerque. All members are encouraged to bring some refreshments to the meeting and program. The monthly meeting will follow the program. A major item is the selection of a secretary, as Linda Popelish declined the position.
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