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5 REASONS TO HIRE A COMMERCIAL REAL ESTATE LEASE LAWYER

You’ve found the perfect commercial property and are happy with the rent, but don’t ever sign anything until you’ve had a lawyer look at the document! It’s tempting to skip that step to fast-track the process, but a commercial real estate lease lawyer can save you a lot of stress, money and legal headaches. Here are some reasons why.

LEASES WILL ALWAYS FAVOR THE LANDLORD

Since the landlord prepared the contract,you can guarantee that it will favor him. He probably hired a lawyer too before he gave that to you. So you need someone to protect your interests and make sure that the provisions aren’t unfair. Just remember that Commercial Real Estate Lawyers will actually check every detail of the lease.

Most commercial leases are long, full of technical legal jargon, and impossible for a layman to really understand.Honestly, most people don’t read all the papers. A lawyer will go through each clause and double check details. He may bring up important issues that aren’t covered in the contract, such as rent protection or a cap on Common Area Maintenance Fees. Since a commercial real estate lease lawyer specializes in these types of contracts and has handled several cases, he knows the scenarios that you need to be protected from.

COMMERCIAL REAL ESTATE LAWYERS WILL NEGOTIATE IMPORTANT AGREEMENTS

 There was one woman who rented a commercial  space for a nail salon.Months later, the landlord rented another unit in the same building to a spa that also offered nail services. This really hurt her business, and she was forced to cut down her prices just to stay in business. This problem would have been avoided if a lawyer had been able to negotiate a non-competitor clause in her lease agreement.

 Another agreement your lawyer can negotiate for is reimbursement or compensation if the lease if the landlord abruptly cancels your contract or forces you to move to another unit.

JUST HAVING A LAWYER ALREADY SENDS A MESSAGE TO THE LANDLORD

There are some landlords that can be pushy or sneaky. Give them an inch, and they’ll take a mile! But if they know that you have a lawyer who is looking at your contract, and is probably going to represent you if there is anything fishy going on, he will be less likely to try to pull a fast one on you.  It’s a lot like hanging a “Warning: This Place Has CCTV Cameras” sign on your door.Knowing they’re being observed already discourages people from doing something suspicious.

YOU’RE NOT WASTING MONEY, YOU’RE PROTECTING YOUR MONEY

 Some people think that lawyers are just unnecessary expenses. But if you look at how much money you’ll be spending on renting your commercial property, than you realize how foolish it would be not to have a lawyer protect your interests. Most commercial leases last for three years, and rent can be very high. Imagine the scenario of being stuck in an unfair contract, the cost of pre-terminating the contract and moving your business, or hiring a lawyer later on for a messy lawsuit. It is cheaper and smarter to just hire a commercial real estate lawyer now to avoid future expenses and protect your investment.

commercial lease rent laws contract

Real Estate Law 102: Commercial Leases




In order to operate a store or business we must first have a location. Walking through any shopping center we see dozens of stores that are renting this location. Sometimes we see them come and go, replacing one another. The commercial leasing market is a massive market, and each lease is something in and of itself. We will see exactly what distinguishes a commercial lease from other types of leases.

Unique attributes

To settle on a commercial lease is generally a longer and more complicated process. The needs of the renter often greatly differ in the business world. The space allocated for renting can be altered and reconstructed based what the business is. In shopping malls, we have often seen a clothing store shut down and a smoothie shop open up. These needs must be identified and agreed upon from the start. Because of these changes a greater amount of money is usually invested then a residential lease and there for they tend to be more binding, it is not easy to back out of an existing lease. Furthermore because of the nature of the business there is not a set standard for the lease, each one can vary greatly from the next. From a legal standpoint, there are fewer protections for the renter, a good example of this is there is not an accepted deposit amount, and there is no cap, so the owner can ask various percentages.

What to look for

The most important factor to consider is that you can in fact afford the lease. Business have their ups and down and you don’t want a space to large that goes empty or a space that you quickly outgrow. Because it is difficult to leave the lease you will likely be in the location for the previously agreed amount of time. Second, make sure that you can make the necessary alterations that fit your needs. Clear up in advance if you can make changes to the walls, floors, or colors if necessary. Another vital factor is what are your advertisement rights, can you put things in the windows? Can you set up a table or stand outside the door? These can be critical for certain businesses. Competition can be a great thing in the business world, or it can also break the business. Are there restrictions on the adjacent space? Can your landlord or other rent the space next to you to the same exact business you have opened. Will they open a pet shop right next to your ice cream stand? These questions must be addressed in negotiations and agreed upon before the lease in binding. Discuss all these questions with an attorney prior to embarking on any lease.

Conclusion

Commercial leases follow an entirely different set of rules then residential leases. For this reason anyone in the leasing market should look into hiring a commercial lease attorney near you is the smartest thing you can do They must be carefully thought out and evaluated at every step. When the commercial lease is a good fit, then your business can start off on solid ground with one less thing to worry about.