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In the realm of commercial leasing, the devil is indeed in the details of the lease. Having a clear, concise commercial lease agreement will lay the foundation for a successful landlord-tenant relationship throughout the life of the lease.

5 Things You Need to Know About Commercial Leasing:

  1. Commercial leases are usually for multiple years, are complex legal documents, and create substantial liability for the tenant. Know and understand the lease.
  2. Some of the primary issues to consider in a commercial lease are: (a) whether the lease must be guaranteed; (b) the permissible uses of the leased premises; (c) the length of the lease; (d) whether options to extend the lease will be granted; and (e) whether the rent will increase over the term of the lease.
  3. The best way for a tenant to reduce liability is to create an entity, such as a corporation or limited liability company, to lease the property and negotiate to limit any liability under personal guaranties required by the landlord.
  4. Negotiating for the right to sub-lease the leased property can provide an exit from the lease if you need an exit to reduce liability.
  5. If the leased property is in a shopping center or office building, the expense of maintaining the common areas are often passed on to the tenant. The lease should specify the exact charges to be passed to the tenant and should give the tenant the right to verify all charges.

There are numerous considerations involved in drafting and negotiating a commercial lease. Our years of experience within real estate law and landlord/leasing will help you navigate the process to completion.


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