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Commercial Lease Lawyers
Basic Lease Provisions
Entering into a commercial lease agreement as a landlord or tenant is an enormous undertaking that can make or break your business. Whether you are a landlord or a tenant, you will need to negotiate the terms of a commercial lease. It is important that you understand the lease provisions before signing.
Does the Lease Contain the “Basics?”
There are certain provisions that every lease must contain. These include:
- Rent – How much and when rent is due, and if there will be increases
- Duration – When the lease begins, ends, and how to renew
- Security Deposit – The amount, how and when it is returned, and if a letter of credit can be used in lieu of cash
Who Pays for What?
Your lease should state who is responsible to pay for utilities, insurance and property taxes. Sometimes these costs are included in the rent.
What about the Property?
The lease should also include provisions that describe the property, including:
- Spatial Specifications – The square footage, borders, parking, and common areas
- Maintenance – The party who will perform and pay for maintenance
- Improvements or Modifications – What alterations will be made to the property before the tenant moves in and who will pay for them
- Signs – The size and location of any signs needed for the business
- Zoning – The type of business allowed to use the space
Does it Plan for the Future?
You should also check for provisions relating to how the property can be used in the future, including:
- Sublease – If the property can be used by another and under what conditions, also referred to as Assigning a Commercial Lease
- Termination or Default – If allowed, how would it be done, and the penalties
- Dispute Resolution – Arbitration or court will be used if there is a dispute
- Non-Compete Clause – Forbidding the rental of nearby space to a competitor
Do I Need a Lawyer to Review my Commercial Lease?
Commercial leases are very complex and often difficult to comprehend. An experienced real property lawyer can help you understand all the provisions of your lease. A real property lawyer can also make sure that your commercial lease doesn’t include any unfair or illegal provisions.
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