what lawyer can review a commercial lease agreement.

Do you need a lawyer to review your commercial lease?

Sometimes a lawyer will quote you a flat fee for a specific job—for example, the lawyer may offer to review your commercial lease for $450. In a flat fee agreement, you pay the same amount regardless of how much time the lawyer spends on the particular job. When an attorney is highly recommended by others and the flat fee is moderate, this can be a great arrangement for you.

How to review a commercial real estate lease?

7031 Koll Center Pkwy, Pleasanton, CA 94566. master:2022-04-05_10-14-50. In all but the simplest deals, it's a good idea to hire an experienced real estate lawyer to help you negotiate your lease, or at least review it. While you may understand the meaning and significance of the clauses in the landlord's lease, that's no substitute for a legal analysis of the particular lease …

How to review a commercial lease agreement?

Dec 02, 2015 · 1. The very act of hiring a lawyer shows your landlord that you’re serious and can’t be easily pushed around or deceived. Landlords will be less likely to …

Do I need a commercial lease lawyer?

Jul 05, 2019 · The experienced business law attorneys at Garmo and Garmo, LLP provide comprehensive guidance with commercial leases and all other types of business matters for clients throughout San Diego County and Southern California.

Why do you need a real estate attorney to review a commercial lease?

Having a real estate attorney review your commercial lease makes sure you understand all of the provisions of the lease, it helps you avoid any traps, it allows you to know what changes to request, and helps avoid any mistakes. Commercial leases are long and complicated.

Who reviews commercial leases?

Commercial leases are often written in favor of the landlord. It’s crucial you get that commercial lease reviewed by an attorney before signing. Call Us (407) 259-2426. Get a Free Consultation. » Practice Areas » Real Estate Law » Commercial Lease Review.

Why are commercial leases considered high risk?

These clauses may be especially high-risk due to your business type, because of economic conditions, because the clauses are poorly worded, or some other reason.

Why is commercial lease bad?

Even worse, a bad commercial lease could leave you and your business on the hook for large, unsustainable rent increases, costs, and fees.

What do you need to know about a lease?

You need to know what limits the lease puts on the landlord and what options you have should the landlord violate those limits. You also need to understand what you are promising to do and what actions the landlord may take should you fail to keep your promises .

Why do you need a lease review?

This helps free your time and helps ensure that you get a lease that is better suited to the needs of your business. You may decide that the lease has too many problems and that the situation is too risky. In this case a lease review will have saved you from making a business move that exceeded your risk profile.

What is a real estate attorney?

A real estate attorney is fluent in the language of commercial leases. When you have a real estate attorney review your commercial leases you are getting someone who speaks the language work through the complicated document. Even if you are an experienced businessperson, a real estate attorney will notice nuances in a lease agreement that you miss.

What can a lawyer do for you?

Here are some of the important things a good lawyer can do for you: Spot subtle (or even not so subtle) variations on a lease clause you are familiar with, and explain its meaning to you. Warn you of hidden problems (or windfalls) in the lease that aren't-obvious to the unprofessional eye.

Is it worth hiring a lawyer for a lease?

While it's true that hiring a lawyer will add expense and perhaps time to your lease negotiations, in the long run it can be worth it.

Do lawyers specialize in real estate?

Most lawyers who don't specialize in real estate have only limited experience in landlord-tenant legal issues—and even those with some experience may know only about residential tenancies. So if you just pick a name out of the phone book or go to the lawyer who prepared your will, you may wind up with someone who's less than ideal for handling commercial lease issues.

How long is a commercial lease?

Commercial leases are typically 3 to 5 years in length. That will feel like an eternity if you are stuck with a lease that is seriously skewed to your landlord’s advantage whether its with arbitrary management fees or ridiculous eviction clauses.

Why do landlords need a lawyer?

1. The very act of hiring a lawyer shows your landlord that you’re serious and can’t be easily pushed around or deceived. Landlords will be less likely to overstep knowing you have a lawyer on hand who can and will initiate legal action at the first sign of wrongdoing. 2.

What is lease protection?

It's the wording that you have to watch out for. A lease protects the Landlord, so it's favoured in their direction naturally as they are protecting their asset in which they receive cash flow, but a Tenant also has rights they need to be looked after.

Can you sign a multi-million dollar lease without a lawyer?

Anyone considering signing any kind of multi-million dollar long-term lease/agreement including entry/exit clauses without involvement of a lawyer or subject matter expert should not be holding such level of "authority to decide" ...

Do lawyers pay for themselves?

3. (Good) lawyers PAY FOR THEMSELVES. No really, they do. While having a lawyer may initially be an extra expense, he or she seriously has the ability to maximize your return on investment by saving you hundreds or even thousands over the years. Hiring a lawyer (should) cost less than one month’s rent. It’s therefore worth at least seeing if your lawyer can get you a better deal for the length of your lease.

Is commercial lease review affordable?

Commercial lease review services are more affordable than you think, especially if you consider a legal expert from Groundworks Commercial Leasing, which has been called the “UBER” of law firms because there is no overhead or mahogany desks to pay for. You just get quality advice quickly and affordably.

Why do you need an attorney to review a lease?

As we have eluded to in the previous points, perhaps the most important reason to have an attorney review your lease agreement is that commercial leases are usually written by the landlord (or more often their attorney), and this means that the contract will be worded in a way that is most favorable to the landlord.

What is included in a commercial lease agreement?

Important points are usually agreed to, such as monthly rent, square footage being rented, term and renewal periods, security deposits and upfront rent, tenant improvement allowance, and many others. These conditions are often included in a letter of intent (LOI). A tenant should expect the points that were agreed upon and spelled out in the LOI to be accurately reflected in the lease agreement, but this is not always the case. A lawyer can thoroughly review the contract to make sure everything is accurate.

How long does a commercial lease last?

Commercial leases typically run for three to five years or longer, and the tenant is usually required to provide a personal guarantee for the entire term of the lease. As personal guarantor, you lose all protection that your business entity may provide (e.g., LLC, Corporation), and you are personally on the hook for any unpaid rent, property damage, or other liabilities. Landlords usually do not want to remove the personal guarantor clause, but you may be able to negotiate some flexibility into it.

What is a lease for a coffee shop?

The lease defines the commercial activities the tenant is allowed to participate in, but the language may be too narrow. For example, if you are opening a coffee shop, you might also want to sell hats, t-shirts, and coffee cups with your logo on them.

Why is commercial space different from residential?

This is because use of commercial space is very different from the way a residential property is used. Pretty much everyone rents an apartment as a place to live, while a commercial property is rented for some type of business use. But each business is unique, and there are many specific ways you may want to use a commercial space, ...

Can a landlord sublet a commercial space?

Or you may be able to negotiate the right to sublet all or part of your commercial space to another party. A landlord may agree to this as long as they are able to approve the new tenant, and as long as the original lessee remains liable for any unpaid rent or property damage done by the new tenant.

Why do you need an attorney to check your lease?

It makes sense to have an attorney check your lease to protect your investment. The attorney understands your business goals and can make recommendations to correct any matters that may jeopardize your business interests.

What are the provisions of a lease?

There are certain lease provisions that are problematic and cancreate disputes between landlords and tenants. They shouldbe carefully reviewed by your attorney before you enter into a lease or renegotiate your lease. These provisions include the following: 1 Common area charges (CAM) 2 Signage 3 Use restrictions and zoning regarding the use of the space 4 Rent increases and methods used to calculate them 5 Tenant improvements. Who is responsible? 6 Options to renew 7 Insurance requirements 8 Assignments

What should be clearly described in a lease?

If a party to the lease will be doing any work to the premises, the scope of work should be clearly described to reduce the chance of a misunderstanding. Oftentimes, the work of the parties is described in exhibits attached to the lease. Carefully review any such exhibits and watch out for provisions in the exhibits that conflict with provisions in the body of the lease.

What happens if you are in a multi tenant commercial center?

If your premises are located within a shopping center or other type of multi-tenant commercial center where you will be sharing certain areas with other tenants, the provisions concerning such common areas may significantly affect your use and enjoyment of your leased premises, and your bottom line.

What is gross lease?

A lease is generally considered a “gross” lease or a “full-service” lease, if the monthly rent (a/k/a base rent) paid by the tenant serves to compensate the landlord for use of the premises and for the property taxes, insurance, and maintenance costs relating to the premises.

Why is a gross lease considered risky?

As a result, gross leases are viewed as being riskier to the landlord because the landlord must absorb any unexpected increases in such costs. Consequently, tenants typically prefer a gross lease.

What is double net lease?

A “double net” lease requires the tenant to pay the property taxes and the insurance premiums in addition to the minimum rent. A so-called “triple net” or “NNN” typically requires the tenant to pay its share of taxes, insurance, and maintenance costs in addition to the minimum rent .

How long do you have to decide to accept an expansion offer?

Typically, you must decide, within some set period (e. g., a week), if you wish to accept the offer. If you pass (or if you are deemed to have passed based on your silence), the landlord is entitled to lease the expansion premises on the same terms and conditions to others.

What to do if landlord refuses to give termination?

If the landlord refuses to grant an early termination right, consider requesting a shorter initial term along with one or more options to extend the term. In this way, after the initial term expires, you have the flexibility to decide whether you wish to stay or leave at that time. Assignment and Subletting.

What is commercial lease?

A commercial lease agreement is a contract for a business to rent an office space or other business property from a landlord. The term 'commercial' simply means that the lease is for business activities rather than housing. A commercial tenant can be anyone from a sole proprietor with a small, growing business to a major multinational corporation.

What are the different types of commercial leases?

What Are the Common Types of Commercial Leases? 1 Net lease – The tenant pays all or part of taxes, insurance, or maintenance costs that would otherwise be incurred by the landlord in addition to the stated rent. 2 Double net lease – The tenant pays taxes, insurance, and rent. 3 Triple net lease – The tenant pays taxes, insurance, maintenance, and rent. 4 Percentage lease – The rent is based on a specified percentage of the tenant's sales or profits. 5 Fully-serviced lease – The rent includes utilities and other services that the tenant would generally pay for separately (common in office buildings with multiple tenants).

What is net lease?

Net lease – The tenant pays all or part of taxes, insurance, or maintenance costs that would otherwise be incurred by the landlord in addition to the stated rent. Double net lease – The tenant pays taxes, insurance, and rent. Triple net lease – The tenant pays taxes, insurance, maintenance, and rent. Percentage lease – The rent is based on ...

What should a lease agreement state?

The lease agreement should state the type of lease and the basis for calculating rent. The above terms are standard arrangements but, like other parts of a commercial lease, are subject to negotiation.

Do commercial leases require renovations?

Renovation provisions are also common within commercial leases. Office tenants may need to move walls, restaurants may want to have a certain layout, and manufacturers may need to bring in special equipment. The tenant must have permission to do so under the lease. The lease should also specify who will pay for renovations.

Do commercial leases have boilerplate language?

While most residential leases use virtually identical boilerplate language, you must carefully negotiate and review a commercial lease to ensure that it contains everything you think it does.

Do landlords have to disclose their lease terms?

Some states do have a limited list of landlord disclosures or other required lease terms. These are generally limited to major public health and safety issues such as asbestos warnings or the use of the property for illegal activities.

What is a break clause in a commercial lease?

Commercial Lease Break Clauses. Make sure you know whether there is a break clause in the. contract. A break clause means that the lease can be terminated. before the end date. A break clause is an agreed specific date. where the lease can be discontinued. A tenant must usually. give six months notice to this effect.

How long does a rent review take?

They should be. decided by tenant and landlord from the outset. They can be set. to any time frame, but often conform to a three to five year. review where the rent can be renegotiated.

How much notice do you need to give a tenant to cancel a lease?

where the lease can be discontinued. A tenant must usually. give six months notice to this effect. A landlord must have the. specific agreement of the tenant to bring this clause into action. on their part. The tenant should also be certain that the building can be used.

What should a tenant be certain of?

The tenant should also be certain that the building can be used. as they intend, and that they have full use and access to the. premises. If the tenant requires alteration of the space this must. be discussed, documented and legally written into the lease.

Should all parties review a commercial lease?

All parties should review a commercial lease before signing. It. is very important to instruct a solicitor to guide you through the. contract and finalise the terms.

Nancy L. Lanard

My firm handles commercial retail/shopping center leases of that type. We charge a flat fee for the review, revision and negotiation of the lease. If you contact me via telephone (215-525-1165 x101) I can provide the exact cost to you, with no hidden charges...

Stephen Samuel Messutta

It's not only the "review" but really the way to control costs is to help you identify particular areas of concern to you that you may want the attorney to negotiate harder on.

Erik Anderson

I agree with the attorneys above. Clients often confuse the size of the rental space with the cost of reviewing a lease. While your attorney may be able to spot issues relatively quickly, the negotiating position taken by the land lord may make the process for time consuming. This in turn results in a larger legal bill...

Brian C Shea

Both of the answers already posted by other attorneys describe good points to consider. Many clients think that a lease for a relatively small space shouldn't take very long to review and negotiate. Having reviewed hundreds of leases, I know that is often not the case.

K Shaylan Baldwin

I agree with the above response...it's just really tough to tell until you see the proposed lease from the landlord. Depending on the size of the shopping center, there can be some considerable negotiation on exclusions from Common Area Maintenance obligations, review of exclusives, etc.

Matthew Allan Quick

It would depend on the length of the lease and any needed clarifications.