The lease that you and your landlord sign defines your legal relationship. Your lease will be one of the most important legal documents you will ever have.
What does the lease do? It contractually binds you to the terms. More specifically:
The lease is a contract in which:
· You agree to pay rent for a certain period of time.
· You agree to abide by other conditions
· Your landlord agrees to let your business occupy the space for a set amount of time.
· Your landlord may agree to physically alter the space to fit your business
Usually the Commercial Tenant will start the search for a space. Typically, a business owner starts the process by spotting a space available in a desirable area. Instead of seeking the advice of a Tenant Rep. the business owner contacts the leasing broker listed on the property. Unfortunately, many business owners do not realize that the listing agent has a fiduciary responsibility to represent the Landlord.
The landlord process. Typically, you'll be working with a lease form that's been written by the landlord’s agent or the landlord's lawyer. You can be sure that neither one of them will be looking out for your best legal interests. In order to avoid being raked over the coals, you need to retain your own Tenant Rep. to learn about the terms of the lease.
There are no standard leases. Contrary to what a landlord may have you believe, there is no such thing as a state promulgated "standard" commercial lease. Any commercial lease can be modified. An experienced Tenant Rep. will help negotiate the best terms for you and not the landlord. He/she is trained to find comparable properties and provide you with an analysis of rent cost in your area. Your Tenant Rep.’s knowledge of lease clauses and the market will determine the success of the lease negotiation. The landlord is only limited to make concession subject to his current lender and insurance obligations.
Your lawyer will help decipher the meaning of lease clauses. Leases are full of legalese. Lawyers often dress up lease clauses in dense legal verbiage or burden them with mile-long sentences. Your Tenant rep. will recommend real estate attorneys in your area experienced in lease negotiations.
Posts
