What issues may parties negotiate with commercial leases?

On Behalf of | Jun 28, 2022 | real estate law | 0 comments

There are countless ways property owners and potential tenants may negotiate the terms of their commercial lease agreements.

Common issues covered in commercial leases

In California, local laws may not dictate the amount of rent a commercial landlord can charge. When both landlord and tenant agree, however, the lease agreement may include payment arrangement details. For instance, to attract stable businesses, property owners may offer incentives such as a reduced security deposit.

Parties may also wish to negotiate coverage for fixtures or renovations to design the space that fits the business model. Commercial leases may include terms for dividing expenses involving common areas. Some landlords may also include provisions that mandate tenants contribute to the building’s insurance costs and local property taxes.

Rental agreements may also indicate which party pays for capital expenditures. A provision may be included, for example, that describes when a tenant will pay for the costs of repairs. Parties may also discuss controllable expenses such as landscaping or waste pickups.

Lease agreements may outline terms and conditions that offer both parties advantages. However, before signing any documentation, getting a legal advocate who can ensure your interests are protected is highly advised.