Commercial leases often require more details and negotiations than a simple residential lease. A commercial property owner has a few more bases to cover. It is important that any lease is clearly written, with well-defined parameters, so as to protect both the property owner and the tenant.
A business law attorney can be a great asset when conducting commercial lease negotiations, often bringing to light certain potential issues that only a trained eye would see. Some things to consider when leasing a property are rental amount, whether you are willing to build the space out to suit a specific tenant, lease terms, maintenance costs and individual responsibilities, liability and insurance clauses, sublease terms, and lease termination. This is not an exhaustive list.
A very important issue to be addressed in a commercial real estate lease is an indemnity clause. This is the clause that will set out specifically which party will be liable to pay for certain damages, should they be sustained. Here, the damages can, and should be, specified so that there is no question as to responsibility should a dispute arise.
Take the extra time to fully cover all bases when drafting and negotiating a commercial lease. It can save time, money, and headaches in the future if things do not go as planned. Remember, you only get one chance to get it right the first time. Commercial leases are usually for a term of more than one year at a time. Therefore, any mistakes made up front will be potential issues to deal with for years.
