Reviewing a Commercial Lease is Equally Important for Tenants and Landlords
Are you a business owner looking to rent a commercial space for your business? Are you a landlord who wants to find a suitable tenant for your commercial property? Whether you are a landlord or a renter, it is important to understand the details of a commercial lease before signing on the dotted line. Otherwise, you may be forced to deal with long-term problems.
A commercial real estate lease is a contract between a business and a landlord for the use of the property for business or other commercial purposes. Typically, a commercial lease is a long-term agreement, such as 5 to 10 years, which legally binds both sides to the terms. Often times the lease is a lengthy document with complex terms, sub-agreements and a lot of legal jargon. Either side may unintentionally agree to terms that they otherwise would have removed from the lease prior to entering into it.
For example, if a landlord rents to a business owner operating as part of a franchise, a term in the lease may allow the franchise to take over the lease if the business owner is not successful. This means a landlord’s tenant may switch from a small business owner to an out-of-state corporate franchise overnight and be required to allow the franchise to take over the space rent-free during the transition period. A tenant may be on the hook for costly repairs or upgrades which otherwise would be the landlord’s responsibility.
The real estate attorneys at Chauvel & Glatt can efficiently review a proposed lease, advise landlords and business owners about how the terms will impact them. Our attorneys can also redraft the lease and negotiate the terms if necessary. To learn more, contact us today.
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