Real Estate – Commercial Leases

 

One should obtain professional legal assistance for either drafting or reviewing every contract they enter, but commercial leases are particularly important. Commercial leases will benefit or burden a tenant for the length of lease term depending on what is included in the lease and how it is drafted. Here are a few special legal features SG Law Group points out to its clients that you should consider when discussing commercial leases. First, commercial leases do not contain the various protections that are included residential lease because commercial landlords are not required to include them (i.e., there is no duty to mitigate). Therefore, all parties entering into a commercial lease are considered to be on an equal and educated footing. Second, many commercial leases contain personal guarantees. Every commercial tenant should be aware of the lease will, in essence, remove the protection of having a corporation for the purpose of the lease should the tenant have created a corporation or LLC (which every tenant should have done prior to seeking a location). Third, commercial leases are most often times longer than the normal residential lease. Because the commercial lease agreement is longer it makes it even more important that it is drafted (or reviewed) right the first time. Finally, the terms of commercial leases can be difficult to negotiate as landlords understand they hold a particular space desirable to the tenant and will be less likely to bend on the terms. However, the negotiation table can sometimes be more flexible if legal representation is procured which understands the commercial real estate landscape (including how the leases should be drafted or reviewed) like those at SG Law Group.  To help you on your next commercial lease contract (whether to draft or review), contact SG Law Group to aid you in making sure that the lease is written in a manner that maximizes the benefits for your business.

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2016-03-31T18:37:56+00:00 November 3rd, 2015|Blogs|