Lease Review and Negotiation
Commercial real estate refers to any property used for business purposes, including office buildings, industrial or retail properties. In most cases, a commercial building is owned by an individual or a company that leases the property to business owners. Because commercial leases accommodate a wide variety of businesses, terms vary significantly from lease to lease. In order to secure the most favorable terms, it is crucial to have a Ventura County real estate contract attorney review and assist in the negotiation and review of your commercial lease before signing the document.
Many issues are addressed in a commercial real estate lease, including:
- Lease term
- Rent and potential for escalations
- Security deposit
- Common areas
- Passthrough expenses
- Ability to modify the property
- Restrictions for signs (style, size, placement)
- Maintenance and repair responsibilities
- Rules for sublets
- Notice requirements for termination
- Penalty for early termination
- Method of dispute resolution
Understand the Terms before Signing a Commercial Lease
Because commercial real estate leases do not offer the same consumer protections provided in most residential lease agreements, it is prudent to have a thorough Ventura County real estate contract attorney review the agreement before signing. Commercial lease agreements are often complex and written in terms most favorable to the landlord. Unlike residential leases, commercial lease agreements do not provide much protection to either party.
Under commercial real estate law, it is assumed that the parties are equally sophisticated and have equal bargaining power and can thus set the lease terms in a professional business setting. However, the standard lease agreements used by many commercial landlords contain terms that are highly unfavorable to the tenants. Unfavorable terms in a commercial lease can have long-lasting implications for you and your business. Before signing a commercial lease, consult an experienced Ventura County real estate contract attorney to learn about your rights. Enlisting the support of an experienced commercial real estate lawyer will save you time and money in the long run.
Commercial Leases are Almost Always Negotiable
Commercial lease terms are essential for businesses and are almost always negotiable. For example, suppose the success of your business is tied to a visible, high-traffic area. In that case, it might be in your best interest to negotiate a longer lease term with an option to renew for a more extended period. If you expect to expand your operations and thus increase space in the future, you might negotiate an option to sublease a portion of the property. You can then lease a larger area than you initially require but recoup some of your costs by subleasing office space to another business until you need the additional space. There are numerous options and differing ways to approach a commercial lease. At the Conejo Valley Law Group, we can explain those options to you and assist you in attaining the option that works best for you and your business.
Contact the Conejo Valley Law Group
A skilled Ventura County real estate contract attorney at the Conejo Valley Law Group can review and negotiate your commercial lease agreement and other transactional documents related to the leasing process. Contact the Conejo Valley Law Group today to schedule a consultation.