Commercial lease agreements
What is a commercial lease agreement?
A commercial lease is a type of contract between a landlord and a business to use the property for the purpose of running the business from that property. Businesses typically pay the landlord rent in exchange for usage of the property.
As a business, the commercial lease you sign for your business is one of the most important documents you’ll ever enter into. It’s important to take the time to learn the clauses you should expect to see in any commercial lease and what those clauses mean. Just about every contract is negotiable.
With that in mind, don’t just sign the commercial lease that the landlord has handed you – the lease was most likely drafted by the landlord’s attorney and is designed to favor the landlord. There are a lots of significant clauses to keep in mind when negotiating commercial leases and they will have an impact on how risks are allocated. 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.
Do you need an attorney to help review a commercial lease agreement?
Yes – Commercial leases are complex and often difficult to comprehend. An attorney can help you review the commercial lease and identify potential risks.
An attorney can also make sure that your commercial lease doesn’t include any unfair or illegal provisions. There could be issues with the zoning laws which might prevent your business from conducting its operations and an attorney can advise you before you make large investments. Or there could be other critical provisions in the commercial lease agreement that would need to be analyzed and researched.
It is important to understand legal risks associated with real estate contracts and an attorney can help identify such risks so you are in a better position to manage those risks by negotiating more favorable terms in real estate contracts. This will also enable parties to perform their obligations better.