Subleasing

When you are the lessee, you may want to make sure you can sublease extra space you have.  The lease should contain provisions addressing whether you can sublease, whether you have to get landlord approval for a sublease, and other relevant terms.

Many times, a commercial lease will require that the lessee require the sublease to incorporate the lease terms and conditions.  Sometimes, the landlord will require that the sublessee go through a process for approval as a sublessee such as […]

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Commercial Leases: Other Clauses—Part 2, 8 Clauses to Think About and/or Include

Continuing the discussion of additional clauses from last week, here are eight more provision that should be addressed in a Commercial Lease.

Security Deposit

Often, a landlord will require a security deposit as a part of the lease.  The provision can have a lot of variable or contingencies.  For one, the amount can be negotiated or even excluded if the tenant can provide sufficient evidence of their financial stability or resources.  Additionally, the clause can potentially require that any security deposit be […]

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Commercial Leases: Other Clauses–Part 1, 8 Clauses to Think About and/or Include

In addition to the clauses discussed previously in Rent and Additional Rent, and in Operating Expenses, there are a myriad of other clauses that should be addressed in a Commercial Lease.  I will identify one group of these clauses in this post, and then address the several more in the next post.

General Information

The lease should state the full name of the tenant, the landlord, the building owners, and the management company, with clear and accurate contact information.  The lease agreement […]

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Commercial Leases: Operating Expenses

Another part of a commercial lease that needs to be specifically examined is operating expenses. Operating expenses may be a part of additional rent, or it could be contained in a separate provision. Regardless, the section needs to be scrutinized by the tenant.

Generally, a landlord will begin by defining operating expenses as broadly as possible. This could include a lot of things for which the tenant will not want to be responsible. Usually, a landlord is not expecting that a […]

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Commercial Leases: Rent and Additional Rent

A basic lease requires the tenant to pay a sum of money for the right to use a defined portion of property for the purpose of running a business out of the location.  This amount is generally referred to as the base rent and is calculated by taking the square footage in question, and multiplying it by a set dollar amount.  Depending on the market and landlord in question, the amount per square foot, and square footage to be used, […]

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Commercial Leases: Generally

If a business decides to lease property, the primary document at issue will be the lease itself.  A lease document is an important legal document which has significant implications for a business.  While we can discuss some of the general and common terms in a lease, it is first important to get the right frame of reference for the lease.

While a business will be tempted not to sweat the small stuff, a lease agreement is not a small issue.  It […]

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