If you are starting a new business or looking to move to a new location, chances are you will be signing a commercial lease. Before you engage in the leasing process, it is a good idea to retain the services of Bellatrix PC. Our skilled attorneys can help draft, review, or negotiate commercial lease agreements. We are also able to represent your business, should a dispute arise involving your current commercial lease, resolve the issue in an efficient and cost-effect manner.
How can an experienced attorney protect your interests in a commercial lease?
There are many facets to commercial leasing and services that Bellatrix PC can offer, including:
- Drafting and reviewing commercial lease agreements
- Negotiating new or re-negotiating existing commercial lease agreements
- Resolving landlord/tenant disputes
- Reviewing advisory opinions regarding lease provisions
- Handling lease-to-own contract proposals
- Handle disputes or litigation after a breach of contract
To protect your lease investment, a careful review of your commercial lease is essential. Our attorneys will educate you on the different components of the lease and their importance, pointing out any liabilities. There are a number of key provisions of a commercial lease that are important for business owners to review and understand before signing on the dotted line. These include:
- Basic Lease Information — These sections usually include the monthly rent amount, address of the property, term of the lease, square footage of the property, and option period to renew.
- Subletting — Some landlords will permit the tenant to sublease space to additional tenants and some will not. If you plan on subletting, it is very important to read the lease’s provisions. For example, most leases will state that if the subtenant fails to pay rent, you as the primary lease holder are responsible for the past due amount.
- Alterations or Improvements — Most commercial spaces are not designed in a tenant’s optimal layout upon signing the lease. Therefore, it is important to negotiate in the ability to make alterations or improvements to the commercial space as long as they are approved by the landlord. It is also essential to clearly state whether these alterations or improvements will remain property of the landlord upon termination of the lease, or if they will be owned and removed by the tenant.
- Failure to Pay and Remedies — These sections of the commercial lease detail specific actions that make the lease go into default, including failure to pay rent, abandonment of the property, failure to pay all required taxes, filing a petition for bankruptcy, etc. This section will state which county and state court systems have jurisdiction over legal actions, should any arise. This is especially important if the landlord is located in a different county or state. This section may also permit the landlord to obtain a judgment of possession to take back the property without any prior notice to the tenant, should the lease go into default.
- Attornment and Subordination — In today’s economic climate, this section of the commercial lease is especially important to read, as it dictates what would happen should the landlord sell or foreclose on the commercial property. In most leases, if an owner loses the property, the new owner will take over the already intact lease and it’s agreed upon components.
- Additional Rent Charges for Maintenance and Insurance — Most commercial leases will require the tenant to pay for a few additional items on top of the monthly rent. These items typically include securing commercial liability/property insurance on the building, maintaining the cleanliness of the inside and outside of the property, and paying a portion of the real estate taxes on the property. Sometimes these are added in as monthly charges or yearly payments.
Our attorneys at Bellatrix PC are dedicated to spending the time necessary to fully understand your commercial leasing needs and goals. Once these aspects have been determined we can examine a proposed lease agreement and explain key lease provisions, identify potential areas of concern, recommend corrective steps, and negotiate for you. Our legal guidance can help you identify unfavorable provisions that may affect your company’s bottom line or business model. We will work to ensure that your rights and interests are protected, and that you can make full use of the space according to the provisions of the lease. Contact Bellatrix PC today or call us a (800) 449-8992 to schedule a confidential consultation.