How to Save Money on a Commercial Lease Agreement

If your business does not have a properly negotiated and drafted commercial lease agreement, you could be losing out on several opportunities to save money. Whether you are a landlord or tenant, having an experienced commercial real estate attorney onboard to help negotiate and draft the lease agreement will help ensure you will not have to spend more than necessary — including on legal fees for litigating a problem that could have been avoided.

Commercial tenants should look for opportunities to negotiate terms and provisions that are favorable, including provisions for:

• Competition clause (limiting the leasing of nearby space to similar companies)
• Maintenance responsibilities
• Improvements
• Notice and opportunity to cure defaults
• Renewal
• Option to purchase
• Expansion

Commercial landlords should include the following provisions in a lease agreement:

• Events of default
• Cure period for default
• Late fees/interest
• Indemnification
• Insurance
• Attorneys’ fees
• Zoning compliance
• Tax responsibilities
• Use of premises
• Renewal
• Termination notice

Commercial leases are contracts – therefore, the terms should be unambiguous so as to create an enforceable contract. If there are ambiguities in the lease agreement, they will be construed against the drafter — usually the commercial landlord. Consequently, a landlord or property owner could lose money if a lease is ambiguous or incomplete.

Whether you are a commercial landlord or tenant, it is critical to have a properly drafted commercial lease agreement for your business. What you would pay a commercial real estate attorney in fees to guide you can potentially save you a lot of money over time.

If you have questions regarding your lease agreement or need guidance or assistance with negotiating your business’s lease terms , please call one of our experienced attorneys at (305) 921-0440, or email us at info@jflawfirm.com.

 

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