what lawyer should be used with business lease issues?

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.

Why do I need a real estate lawyer for my business?

The physical and legal condition of your company's space can significantly affect your business operations, and you need to protect yourself with an investigation of the facts. In addition to reviewing the proposed lease, your real estate lawyer should also:

What should a commercial lease look for?

Commercial leases are subject to much less government regulation than residential leases, so it’s important to have a clear understanding of the lease terms and negotiate modifications with the landlord as appropriate. Here are 12 areas where a commercial lessee should pay particularly close attention to a lease:

What are the most common mistakes when negotiating a commercial lease?

Companies large and small can make major mistakes when planning for new space and negotiating the lease - these are the most common. 1. Not Allocating Enough Time Conventional wisdom in the commercial real estate industry is to allow six to 12 months to complete a deal for less than 10,000 square feet and nine to 18 months for larger deals.

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

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Hiring a Lawyer for Commercial Lease Negotiations

Even the best negotiators will benefit by having an experienced lawyer aid in lease negotiations.

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.

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.

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.

The Commercial Lease: Top Six Issues for Businesses

During the COVID-19 pandemic, many people had to shutter their businesses, and they had lots of questions about how to get out of their commercial leases. Commercial leases, especially for small business owners, often favor the landlord very, very heavily.

What Are Some Standard Commercial Lease Terms?

We often get asked: “Is there anything in the lease that is always the case? Is there something that’s standard and can never, ever be changed? When we negotiate lease terms, often the attorneys will claim that their lease is standard, boilerplate, and included in all of their leases.

Other Considerations

You should keep a few other considerations in mind when entering into a commercial lease.

What to do if your lease isn't clear?

If the lease terms aren’t clear, ask the landlord to include details about who will pay what costs and how they will be calculated. Compliance with Laws.

What is the term of a lease?

The Lease Term. The “term” of a lease refers to its length. It sets forth when the lease begins, when it ends and whether there are any specific options for renewal. As a general rule, landlords will typically be more flexible in negotiating leases with longer lease terms, especially on rent.

How far in advance do you have to give notice to a landlord that you are not going to renew your lease?

For example, a lease may state that, sixty days prior to the end of the lease term, the tenant must give written notice to the landlord of its intent not to renew. If notice isn’t given sixty days in advance, the lease may call for the term to automatically renew.

Can a landlord drill into a marble facade?

For example, a landlord may not be willing to permit a lessee to drill into a marble facade in order to attach a sign.

Do landlords own improvements?

Typically, a landlord will own improvements made to the space upon the termination of the lease.

Can a landlord remove fixtures?

However, a tenant may have the right to remove fixtures (those items that become part of the property but can be removed with relative ease and limited effect on the building itself.)

Is rent a decision maker?

Naturally a primary concern for any lessee, rent can be the driving decision-maker when it comes to making a determination whether to lease a space . Pay close attention to what the lease says about rent escalations or increases, as a fixed rent for the entire term of a commercial lease is not common.

What is commercial lease?

A commercial lease for office or retail space is a serious commitment for your business. Companies make mistakes all the time with these 7 as the most common.7 min read

How long is a lease contract?

They are typically long-term contracts lasting at least five years, the rent is often your second-biggest monthly expense after payroll, and the rights and limitations in your lease agreement have major effects on your ability to expand, contract and relocate your business. Companies large and small can make major mistakes when planning ...

What is a single net lease?

Single net lease or net lease: The tenant pays only its portion of the utilities and property tax (calculated by the percentage of space leased in the building), while the landlord pays for all maintenance, repairs and insurance.

What is a fit out lease?

If the new space needs to be renovated or customized for your operations (a "fit-out"), the lease needs to specifically address these issues. You'll need to negotiate who does the space design work, who does or manages the construction, whether there are hard deadlines for completion and who pays for it. It is also important to reach agreement on any rent payment obligations during the fit-out.

What does a tenant representative do?

A tenant representative will understand the current condition of the real estate market in your city and the current situation of your particular landlord. For example, does the landlord need tenants? Is it about to lose a major tenant which will cause a significant vacancy in the building? Or does the landlord have a fully leased building for the indefinite future? Without this information, your company won't understand how much negotiating leverage you may have and the range of incentives your landlord may be willing to offer to sign a new tenant.

How long does it take to complete a commercial real estate transaction?

Conventional wisdom in the commercial real estate industry is to allow six to 12 months to complete a deal for less than 10,000 square feet and nine to 18 months for larger deals. The lead time is required for the various complicated steps in any business relocation - due diligence of possible locations, negotiation of the lease, ...

Should prospective tenants focus on rent?

Prospective tenants should not focus only on the rent and other payment terms - other key lease provisions can be much more significant to the future of your business. It's important to ask and resolve the following questions: