M ost commercial leases are complex, have numerous requirements and are specifically customized to fit the landlord’s and tenant’s needs and wants. Lucky for you there isn’t an operating, build-to-suit, ground, or sublease that we haven’t skillfully negotiated. As landlord leasing counsel we advise on every aspect of a property’s operation. For tenants, we advocate on commercial property leases, draft letters of intent, and assist in deft resolution of disputes.
When entering into a lease, both parties want to avoid future disagreement and confusion regarding the terms of the lease. We take a personalized, detail-oriented approach for our client’s benefit, and draft leases that clearly define each party’s obligations, including what happens when problems arise.
The following list includes some terms that are often addressed in commercial leases:
- Allowable increases/escalations in rent and how they will be computed.
- Whether the rent includes insurance, property taxes, and maintenance costs (a gross lease) or whether those items will be charged separately (a net lease).
- Whether there will be improvements, modifications, or fixtures added to the space; who will pay for them, and who will own them after the lease ends (generally, the landlord does).
- Specifications for the dimensions and locations of any signage.
- Who will maintain and repair the premises, including the heating and air conditioning systems.
- Whether the lease may be assigned or subleased to another tenant.
- Whether there’s an option to renew the lease or expand the space being rented.
- Limitations for the type of business that may be operated on the premises.
- An acceleration clause upon a breach of the lease by the tenant which allows the rent for the rest of the lease term to become immediately due.
- If and how the lease may be terminated, including notice requirements, and whether there are penalties for early termination.
Trust SLF to skillfully draft, negotiate and protect your interests. Contact us today.