Top Provisions to Include in Your Commercial Lease
During any commercial real estate lease negotiation, you’ll want to have a South Florida commercial real estate attorney review your potential lease and ensure that there are sufficient provisions in the agreement to protect you from future circumstances.
Before signing any commercial lease, be sure that you have a qualified legal expert advise you on terms that may need to be included, such as the following among many others:
A use clause will define how you will be utilizing your rented commercial space. Landlords may require specific use restrictions for a wide range of reasons; they may want to control the liability of certain types of operations or may be against certain business activities. The tenant will want to have minimal restrictions on their operations to ensure they can perform all of the required tasks for their business.
A term clause will describe the length of lease and gives specific dates on when it will start and end. This can be important to go over with a commercial real estate lawyer in South Florida because the details of the term can be trickier than you might think. For example, your term can start on the date that the lease is signed, not the date that you move in, which is unfavorable to the tenant.
Rent Obligation Clause
The rent clause will specify the monthly amount due to the landlord, along with the specifics on the types of costs that the tenant is obligated to pay now and in the future. It is particularly important to review this clause with an attorney so that you have a full understanding about what your rent obligation will be, what potential rent increases could be, your specific due date each month and other details.
Commercial real estate owners can demand almost any amount for a security deposit, depending on what they believe their risks are. This is often a major point of negotiation with a commercial lease, so be sure to speak to your Florida commercial real estate attorney regarding this area.
This type of clause will allow a business to be the only one of its type in a building, mall or area. This can be very favorable to the tenant as it can limit their competition. It is not a common clause because only very powerful tenants are typically able to negotiate an exclusion clause.
These are just a few of the provisions that may be included with your commercial lease. For advice on your particular circumstance, call Schecter Law for a consultation at (954) 779-7009.