If you are a business owner who is looking to open a brick-and-mortar location or considering moving your existing business, there is a good chance that there is a commercial lease in your future. A commercial lease is an agreement that specifies the rights and obligations of a landlord and tenant with respect to a piece of commercial property. Because the terms of your lease can have a significant impact on the success of your business and your bottom line, it’s critical to have an attorney review its terms before you sign it.
Some of the specific issues that you consider before signing a commercial lease are listed below. For more information or to discuss your case with a lawyer, call our office today.
Many commercial property owners want to limit the activities conducted on the premises. This can make sense, as a landlord certainly does not want a commercial tenant using toxic chemicals or engaging in conduct that puts the property or other tenants at risk. However, you must ensure there are no restrictions on the way you need to use the property for your business. For example, if you want to run a bakery and the lease says you cannot use ovens on the property, this can obviously cause a serious problem.
Alterations to the Property
Many companies need to tailor the commercial space to meet their specific needs for operations and workforce. The lease should address whether a tenant is allowed to alter the property, as well as whether a tenant must return the space to its original state at the end of the lease term.
CAM and Other Costs
Many commercial properties have common areas that are used by visitors to the various businesses in the space. For instance, many office buildings have suites that individual businesses occupy, but the building itself has a lobby, bathrooms, and other areas that are available for us to everyone that enters the building. In some commercial leases, tenants will be responsible for a certain percentage of common area maintenance (CAM) fees. In addition, some commercial leases have provisions that make tenants responsible for increases in property taxes or insurance.
Possible Lease Termination
Many commercial leases are for longer terms than residential leases. You do not want your landlord to be able to terminate the lease only a year after you get set up and start your operations. On the other hand, if your business does not succeed, you do not want to be stuck paying a five-year lease without the ability to sublease, assign, or terminate the lease. Make sure you understand the ability of you or your landlord to terminate the lease.
Call Us Today to Schedule an Appointment with a New Jersey Real Estate Attorney
If you are considering entering into a commercial lease, either as a landlord as a tenant, it is in your best interest to consult with an experienced attorney as soon as you can. Lawrence M. Centanni is a skilled attorney with more than a decade of experience practicing in real estate law and can ensure that your rights are protected. To schedule a consultation with Mr. Centanni, call our office today at 908-351-0028 or send us an email at firstname.lastname@example.org.