Most of our readers have likely executed a residential lease sometime during their lives with a landlord. Perhaps not much comes readily to mind concerning any material complexity that attached to that document. Indeed, many residential lease contracts are so-called boilerplate instruments that don’t leave much — if any — negotiating wiggle room for a tenant.
That is far from the reality inhering when a lessee and landlord come together to discuss, negotiate and execute a commercial lease. The aforementioned wiggle room that typically lacks in matters relevant to a residential lease is manifestly on display when it comes to a commercial lease.
And it’s not hard to see why. Lawmakers who draft lease legislation, and judges who oversee litigation related to leases when things go wrong, presume heightened sophistication on the part of commercial lease participants. After all, one side is a business principal and the other an experienced real estate player.
As such, there is often a lot of give and take in a commercial lease, with ample room for both sides to negotiate terms and come to an understanding that can readily differentiate the look and feel of a lease agreement in a given case.
Candidly, both landlords and tenants need proven legal acumen at their side when working toward lease execution. “The failure to determine requirements prior to committing to a lease can lead to unfortunate consequences,” notes one online examination of commercial leases.
Negotiations pertinent to a business lease can run a wide gamut of concerns, ranging from lease term and rental considerations to improvements, use and exclusivity clauses, assignment/sublet provisions and more.
A proven business and commercial law attorney with a proven background in real estate transactional and litigation matters can help a client pursue best-case outcomes concerning all those issues and more.
Berdon, Young & Margolis attorneys routinely assist diverse business clientele with all their legal needs. We welcome readers’ contacts to the firm and the opportunity to apply our proven acumen on your behalf.