Leasing Commercial Property

Your office lease can be one of the most expensive and important contracts you will ever sign. It contains both assets and liabilities that will govern your tenancy. A poorly negotiated lease, at a minimum, may result in greater expense and disruption to your practice. At worst, you could be held captive by your lease if you have not carefully considered each of the lease terms.

Many commercial tenants make the mistake of paying attention only to property location, rent and other costs listed in the lease. However, leases usually address many other important issues. For example, leases often allocate the responsibility and risk of loss that can occur to people or property. Risks are often allocated between the tenant and landlord in a manner favorable to the landlord. In addition, leases usually require the tenant to maintain various forms of insurance on behalf of both the tenant and the landlord.

Commercial leases are usually generic forms drafted by landlord trade associations. Although your lease may be presented as a “take it or leave it” proposition, do not assume that you cannot negotiate. Most landlords will negotiate at least some provisions, which can be easily modified by amendments to the form.

It is in your best interest to have an attorney experienced in drafting and negotiating commercial leases negotiate the legal terms and conditions of your lease. This is an ounce of prevention that is well worth the cost. Your attorney will help you focus on the more important terms in the lease. He or she can best guide you on the impact of the lease terms and what changes are necessary.