As the busy summer season begins to wind down, many Bow Valley business owners are looking ahead to the months and years ahead. If your commercial lease is coming up for renewal, now is the time to review your agreement and consider whether it still meets your business needs. Canmore-based lawyer Don Blackett, KC shares practical tips for business owners preparing to renew a commercial lease.
When should I start thinking about renewing my commercial lease?
Earlier than you might think. Many leases require tenants to give notice if they intend to renew, and those deadlines can come months before the lease expires. Missing a renewal deadline could mean losing the option to stay in your space or limiting your negotiating position.
Is renewing a lease just about negotiating rent?
Not at all. Rent is important, but it's only one part of the agreement. A renewal is an opportunity to review other terms that may no longer work for your business, including maintenance responsibilities, operating costs, renewal options, signage rights, permitted use, and who pays for improvements or repairs.
Can tenants negotiate lease terms at renewal?
Often, yes. While every situation is different, a lease renewal gives both parties an opportunity to discuss changes that better reflect the current needs of the business and the property. If your business has grown, changed its operations, or requires additional flexibility, it's worth having that conversation before signing.
What are some common issues you see with commercial leases?
Many business owners focus on the immediate costs without fully understanding their long-term obligations. We've seen situations where tenants are surprised by operating costs, maintenance requirements, or restrictions on renovations and subleasing. Taking the time to understand those provisions before renewing can help avoid unexpected costs down the road.
When should I involve a lawyer?
Ideally, before negotiations begin. A lawyer can identify potential concerns, explain provisions that may affect your business, and help negotiate terms that better protect your interests. It's much easier to address issues before a lease is signed than after a disagreement arises.
Any final advice for Bow Valley business owners?
A commercial lease is often one of the most significant financial commitments a business makes. Before renewing, take the opportunity to make sure the agreement still supports where your business is today and where you want it to be in the future. A careful review now can save significant time, money, and frustration later.
