Commercial leases can be very cumbersome documents, with a lot of requirements and hefty obligations on the lessor. It is essential to review them carefully prior to agreeing to any terms.
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Commercial leases can have many unique terms and all leases are different.
Because of this, it’s always essential to review your lease with an attorney before signing or agreeing to the lease.
Typically, a commercial lease will state the property and the parties, along with a purpose that the space is allowed to be used for (i.e. storefront, apartment building, medical clinic, office space, etc.).
The term of the lease, along with any ability to terminate, should be spelled out clearly. Also, be aware of any automatic renewal provisions.
The costs should also be identified. There will likely be costs in excess of the rent, such as utilities or various fees. There also may be an escalation clause, so make sure you understand how much your rent can increase each year.
Commercial leases may also have a variety of individualized provisions, as it relates to build out, condition of the space, parking, cleaning, subleasing, and more.
If there are terms you don’t understand or don’t agree with, make sure to change them prior to signing the lease.
Commercial leases can last for long terms, and automatic renewals can stick you with another term of the lease. It is essential you protect your interests and your business interests by taking the commercial lease very seriously.
Thoroughly negotiating a lease prior to signing can lead to clear understandings and avoid litigation down the line.
If you need help reviewing or drafting a commercial lease, contact Rickard & Associates today!
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