when to get commerical lease lawyer

A commercial real estate attorney can help you negotiate favorable lease terms to save you money, and avoid disputes later on. It is recommended that you work with a commercial real estate attorney when you are negotiating or re-negotiating your lease.The attorney can represent you in connection with any landlord/tenant matters that may arise.

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.

How long should a commercial lease be?

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. Last but certainly not leased: 3. (Good) lawyers PAY FOR THEMSELVES. No really, they do.

What should I know before signing a commercial lease?

Whether you are signing your first lease or getting ready for a move or a renewal, you need to have a thorough understanding of commercial leases. Unlike residential leases, commercial leases are very much "buyer beware." Your rights are exactly as stated in the lease with little to no other protections.

Do you need to review a commercial lease agreement?

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 Commercial Tenants Get Any Legal Protections Outside of the Lease Agreement?

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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.

The Assumption Is That You Have Legal Representation

Commercial leases are viewed under the law differently than residential leases. With residentials, it is assumed that you don't have an attorney available to review various terms, and so the agreements are fairly standardized, and there are numerous consumer protections available under the law.

What's in a Commercial Lease?

Commercial leases contain many negotiable clauses. Knowing which ones you can negotiate away, and which ones you need tightened up, usually only comes with experience. For instance, what is the length of term of the agreement, and do you want to be able to sublease? That depends on your business needs.

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.

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

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.

Office Leases, Store Leases, and Other Commercial Leases

We represent business clients in reviewing, negotiating and drafting commercial leases, including office leases and store leases. We believe that our extensive experience in real estate lease and contract negotiating and drafting gives our clients a clear advantage in dealing with landlords and leasing agents for commercial properties.

Legal Fees for Reviewing, Negotiating and Drafting Commercial Leases

Our legal fees are eminently fair for the professional legal services we provide to our clients. Lease review and negotiation are usually provided on an hourly fee basis, although in some circumstances, a “flat fee” may be provided.

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.

How much does a lawyer charge per hour?

Paying your lawyer by the hour is the most common method. In most parts of the United States, you can get competent services for your small business for $150 to $250 an hour. Most lawyers bill in six-, ten-, or 15-minute increments. Understand that these are the smallest "chunks" of time that the lawyer will bill for, ...

What to do when you have runaway hourly fees?

If you are concerned about runaway hourly costs, you can ask the lawyer to agree to a "cap," or an upper billing amount. This means that when the cap has been reached (or is near), the billing will stop (and the lawyer will stop working) until you authorize more work.

What is flat fee agreement?

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.

Do lawyers have to be free from government regulation?

Unlike physicians, for example, who have insurance companies and the government monitoring virtually every move, lawyers are free from heavy-handed regulation. As a result, many choose to avoid bureaucratic paperwork, which they regard as a time-consuming nuisance.