what lawyer do i need about signing commercial lease

Full Answer

Do I need a commercial real estate attorney for a lease?

A commercial lease is complicated, and there are many issues that need to be addressed. To make sure you are legally protected, you should have a commercial real estate attorney assist you with the negotiations and review of your commercial lease.

Should I sign a lease with an attorney?

Just like other legally binding contract, you should never sign a property lease until the document has been vetted and approved by your attorney. Unlike potential landlords, your attorney works for you, and is paid to make sure your best interests and the interests of your company are protected.

How to sign a commercial lease for a small business?

Commercial leases are complicated. These tips will help you sort through the legal jargon. Research is the key to signing the right business lease. Specifically, look at the building owner, landlord, zoning laws, environmental expectations and nuisance laws.

Should I hire a lawyer to negotiate with my Landlord?

Consider hiring a lawyer to review the document and to help you with the negotiations, particularly if you reach an impasse with the landlord. An attorney can help you decide when to cut and run and when the risk is worth it.

What factors should be considered before signing a lease?

Four Factors to Consider Before Signing a Commercial Property Lease AgreementUnderstanding the Different Lease Types. Lease agreements are not all the same. ... Property Lease Length. ... RSF Versus USF. ... Commercial Property Tenant Fit Out.

Are witnesses required on a commercial lease in Florida?

Florida Removes Requirement For Witnesses In Commercial And Residential Leases. Signed into law on June 27, 2020 and effective July 1, 2020, Florida House Bill 469 removed the Florida requirement that two witnesses must sign residential or commercial leases for longer than a year.

Does a commercial lease need to be notarized in Florida?

No, a commercial lease does not need to be notarized in Florida to be legally binding; however, either party can request to have the commercial lease notarized. If the lease is notarized, any changes or additions may need to be notarized, as well.

Can I witness and notarize the same document in Florida?

No. Although some states may allow a notarization based upon such sworn testimony, Florida does not.

What is the most important thing to know when signing a lease?

One of the most important aspects of signing a lease is being able to operate your business to its fullest capacity once you open your doors. Many leases have extensive points on noise, smells and equipment. Ann Brookes, a tax attorney, said that when she signed a lease for a restaurant, she had to negotiate an "offensive odors stipulation."

What is a commercial lease?

A commercial lease is required any time a business rents a commercial property for the purpose of conducting business from that location. Nishank Khanna, chief marketing officer at Clarify Capital, said a commercial lease agreement is a legally binding contract between a landlord and a business tenant.

What happens if you are late paying rent?

Late fee. If the tenant is late in paying rent, they will incur a late fee that is outlined by the commercial lease agreement. This can be a flat fee or a percentage of the monthly rent.

What is a gross lease?

A gross lease covers all operating expenses, and that includes utilities. A net lease is less inclusive and usually does not cover utilities.

Why is it important to sign a lease?

Signing a lease is an important step for any new business owner. Whether you're opening a store, moving into an office space or renting out facilities for production, at some point, you're probably going to have to reserve a space for your business.

How long does it take to find a new home for a business?

Gumersell said this process can take two years or even longer, so make sure you plan accordingly if your current lease's end is in sight. 2.

What are the steps to take before signing a lease?

There are two basic steps to take before signing a lease: Do extensive research, and be aware of typical statutes included in business leases. Steps for research include vetting the landlord, determining the building owner, researching zoning laws and getting a general feel for the area.

Who starts the process of a lease?

The landlord usually starts the process. Typically, you'll be working with a lease form that's been written by the landlord or the landlord's lawyer -- and you can bet that neither one of them will be looking out for your best legal or business interests. In order to level the playing field, you need to learn a bit about the terms ...

What does a landlord do with a business?

Your landlord agrees to let your business occupy the space for a set amount of time. Your landlord may agree to physically alter the space to fit your business, or provide amenities such as on-site parking and weekly janitorial service. The landlord usually starts the process.

What is a lease agreement?

The lease is a contract in which: You agree to pay rent for a certain period of time. You agree to abide by other conditions (such as using the space for a consulting business only, or not displaying outside signs unless the landlord first approves them).

What is landlord proposed lease?

A landlord's proposed lease is just the starting point from which you can negotiate changes.

Is there such a thing as a standard commercial lease?

There are no standard leases. Contrary to what a landlord may have you believe, there is no such thing as a "standard" commercial le ase. Even if the landlord brings out a form that's widely used in your community or printed by a legal forms publisher, it can always be modified.

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.

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.

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.

What to do if landlord drew up lease?

Even if the landlord drew up the lease themselves, don't assume that they got everything right. Check the start date, end date, rent, rent escalation terms, and any other special terms you've negotiated for. And above all, be sure you know what you're obligated to do under the lease's terms.

What is the importance of understanding lease terms?

It's vitally important that you understand lease terms, how they'll impact you, and that you've negotiated the best deal possible for yourself before you sign a business lease. This begins with having a working knowledge of terms like "CAM" and arbitration clauses.

What is boilerplate lease?

Many landlords use "standard" or "boilerplate" leases that include general terms that are common to most leases, so make sure terms are included if you've negotiated something different. Make sure that the standard language and your special language don't contradict each other.

What is CAM in leases?

Most leases use the term "CAM" rather than spell out "common area maintenance.". You should be allocated a percentage of the CAM fees you're responsible for. Your fee is based on the percentage of the building you're renting.

How long does a lease guarantee last?

Consider providing one for only a portion of the lease term, or negotiate for a guarantee that lasts for only six to 12 months after you terminate.

Is it a done deal to sign a lease?

It isn't necessarily a done deal just because you've been given a lease for signature. This doesn't mean that any opportunity for negotiation is over. That doesn't happen until the lease has been signed by both parties. Make a list of all the provisions you don't like as you're reading the lease.

Can you ask for a CAM stop lease?

But you can ask the landlord for a CAM Stop lease so you'll only pay for an increase in CAM fees and property taxes above your initial lease year, often called your "base year.". The landlord might increase your base rental rate in exchange, but it takes a lot of the "mystery fee" out of the rent.

How long is a commercial lease?

Commercial leases are often multi-year agreements, averaging about five years, depending on the location and market conditions . This means it’s monumentally importantly that you and your future landlord are a good match. Before making the long-term lease commitment, ask yourself:

Is it reasonable to ask a landlord for a lease?

Just because a landlord is asking for a certain lease price doesn’t mean it’s always reasonable. Protect yourself by getting comparables, or comps, from your leasing broker to make sure you’re paying a fair price.

Why do you need a commercial real estate agent?

Having an agent experienced in commercial real estate is critical, not only to help you find a location but more importantly, to advise you on the lease negotiations. This can be gruelling and costly if you don’t have experience in your corner.

What is the lease term for a 20 year lease?

This is imperative to securing your business and also to get the most of the cost invested in the leasehold improvements.

How to find the right location for a business?

1. Take your time. Finding the right location for your business will be a time-consuming, stressful process. Accept this from the start, and you’ll do fine. Choosing the right location for your business can be a make-or-break proposition, so you need to ensure you take the time to do it correctly.

What is the goal of a commercial lease negotiation?

Your goal is to change the situation to one that favors you or at least gives you the terms you need for your business to prosper.

What is the importance of having a lease reviewed?

For this reason, it is vital to have the lease reviewed by a knowledgeable professional such as a commercial real estate broker or a lawyer. A knowledgeable professional can help you understand the hidden pitfalls and point out where you are vulnerable. You need this knowledge to calculate the risk and reward on any property accurately.