ABOUT COMMERCIAL LEASES
Kocian Law Group has the resources and experience you need when you require legal representation for commercial leases. Below our legal team has answered questions that are frequently asked about commercial leases:
- What is a commercial lease? A commercial lease is a legal document which sets forth the duties and responsibilities of the lessor (the company or person renting the premises to others) and the lessee (the company or person leasing the premises).
- What are the typical obligations of a commercial lease? Usually most commercial leases have a rental time period (the number of years the lease will rent the premises), cost of rent (both annually and monthly), rights and responsibilities of the tenant, and the rights and obligations of the landlord. As commercial leases are specifically tailored to individual businesses the terms of the lease are typically specifically drawn to accommodate the type of business being operated at the location.
- Do commercial leases differ from residential leases? Commercial leases are uniquely different than residential leases. The ordinary consumer protections that are included in a residential lease, as a matter of law, are absent from commercial leases. The law recognizes that businesses operate differently than individuals and therefore typical protections that one would expect on a residential basis do not exist in commercial leases.
- Are security deposits necessary in commercial leases? The most common leases typically require a security deposit. Often these deposits are tailored to the type of business involved for the protection of the property owner. For example, in gas station leases there is often a security deposit on the gas tanks and their contents, which is required by the gasoline company leasing the premises.
- Can I receive concessions in a commercial lease? The very nature of commercial leases is that they are more unique than other types of leases. Provided the landlord is receiving the market rent desired for the property, concessions for business owners can be made provided the owner of the property is receiving the ROI (return on investment) required for the property.
- What are the basic items that need to be addressed in a commercial lease?
- Lease term
- Security deposit
- View rights or restrictions
- Exclusivity clauses
- Common area maintenance
- The exact parameters of the space being leased
- Parking spaces
- How the rented unit may be modified and who will own those modifications
When dealing with a commercial lease you need legal guidance to direct you through the myriad of items which need to be addressed. Typical terms and issues which need legal attention may include:
- Identification of the parties
- Determining commencement date, possession date, rent commencement date and termination date
- Description of the leased premises
- Permitted use of the leased premises
- Governmental approvals
- Compliance with law
- Tenant improvements/ ownership of additions or fixtures
- Repairs, maintenance and common area expenses
- Tax responsibilities
- Audit rights
- Assignment and subletting
- Subordination, non-disturbance and attornment
- Insurance and waiver of subrogation
- Destruction of premises
- Exclusivity agreements to the leased premises that a landlord will not allow another tenant to sell the same services or products within a given shopping center
- Environmental provisions
- Default provisions and remedies
- Renewals and options to renew
- Notice provisions
- Severability of Illegal provisions
- Recording provisions
- Broker payments
- Exhibits to the lease
CONTACT OUR COMMERCIAL LEASE ATTORNEYS
Whatever your legal concerns may be regarding any type of commercial lease, the lawyers at Kocian Law Group can help you find the best solution for your situation. Contact Kocian Law Group at 1-860-730-6100 or reach us online to schedule an initial consultation.