Negotiating a commercial lease can be difficult. While there are many honest and dependable landlords out there, it’s not uncommon to cross paths with ones who try to sneak something into the lease that just simply isn’t good for you. If you need help reviewing a commercial lease or need some guidance regarding negotiations, it’s in your best interest to contact a commercial lease dispute attorney in Stuart, Florida. Crary Buchanan has your best interest at heart. Call 772-287-2600 to schedule a free consultation or contact us online with our easy-to-use form.
Important Elements of a Commercial Lease
In order to make sure you’re negotiating a good commercial lease, it’s important to have some knowledge about commercial leases in general. You want to make sure you understand each and every provision in the lease, as well as what exactly needs to be done to ensure that the lease is valid. The following are some essential things to keep in mind as you are trying to negotiate a commercial lease agreement.
1. Letter Of Intent
One of the first steps in creating a valid commercial lease is a document referred to as a letter of intent. The letter of intent is generally used to let the property owner know that you are interested in leasing their property. The letter of intent is a preliminary agreement that outlines the major points that will be included in the lease. It won’t be nearly as detailed as the final lease. For example, the letter of intent might outline how you intend to use the property. It’s essentially a starting point for negotiations. The letter of intent is important, but this document alone does not create a binding lease.
2. Know What The Property Is Worth
Before you can successfully negotiate a commercial lease, it’s a good idea to know what the property’s rental value is. What are other similar properties renting for in the area? Is there work that needs to be done before you can start using the property? Is the property in an already developed neighborhood or an up-and-coming one? All of these questions are important to consider.
3. Know Your Worth
In addition to knowing what the approximate rental cost should be, it’s also crucial to be able to articulate what you bring to the table as a tenant. Property owners are studying you just as much as you’re vetting their property. It’s a good idea to outline all of the good things about you and your background when you begin negotiation with a property owner. For example, do you have good credit? Can you provide solid references? How long do you wish to rent the property? What is the current leasing market like? All of this information will be important when you’re trying to negotiate the terms.
Familiarize Yourself With Terms
Once you know what you’re looking for and what you bring to the table, it’s also important to familiarize yourself with some standard terms and phrases. If at any point you’re confused, or you just want the help of an experienced commercial lease dispute attorney in Stuart, FL, please don’t hesitate to reach out to us.
1. Full Service vs. Net
Full service means that the property owner will pay for the operating expenses for the first year, including taxes, utilities, and insurance. Net rent refers to an agreement where the tenant pays for some or all of the operating expenses. If you sign a net lease, it’s important to make sure you’re able to oversee certain things to ensure that the property owner is charging you fairly. For example, you may put in the lease that you are permitted to see how much utilities and insurance cost so you can make sure your landlord isn’t overcharging you.
2. Improvement Allowance
An Improvement allowance is the amount of money a property owner is willing to spend on improvements. In a market where property owners are having difficulty renting their units, it’s much more likely that you will be allotted an improvement allowance. If the market is competitive and many people are trying to rent the same space, this may not be an option.
3. Renewal Rights
Renewal rights refer to your option to renew the lease at the end of the term. The last thing you want to do is to rent a place, get everything set up, and have to move out shortly after you’ve become successful because you didn’t correctly negotiate renewal rights. You don’t want to wind up spending a lot of money all over again to negotiate a new and different lease.
We Can Help
If you’re in the process of negotiating or signing a commercial lease, you must know precisely what needs to be done and what needs to be in the lease to make sure you are protected. We want to do everything we can to make this process as easy as possible for you.
Sometimes a landlord will try to sneak things into the lease that are not to your benefit. That’s where we come in. If you need a commercial lease dispute attorney in Stuart, FL, we can help. Crary Buchanan is a general practice law firm dedicated to providing quality legal services in the state of Florida. Our lawyers have significant legal experience in practically every major area of the law, and many of our associates are Board Certified by the Florida Bar in their areas of expertise. That breadth of legal experience, coupled with years of history in our community, means Crary Buchanan attorneys are miles above the rest.
If you have more questions or need help with any commercial lease matters, call 772-287-2600 or schedule a free consultation online with our easy-to-use contact form. We have successfully helped hundreds of people negotiate commercial leases. You can always depend on Crary Buchanan for our honesty, hard work, experience, and trust. Call today.
The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not decide whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed, nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.