Commercial leasing differs from residential leasing in a number of manners. Firstly, commercial leasing is far less regulated than is residential leasing. The relationship between a commercial landlord and tenant is almost entirely defined by the terms of the lease agreement and it is therefore imperative that both parties to the lease, the landlord and the tenant, fully understand the terms of the lease and negotiate same to include all of the terms which are important to them.
Secondly, the stakes involved with commercial leasing are normally much higher than in residential leasing. Commercial leases will typically last for anywhere from three to twenty years, will require the principles of a business to give personal guarantees, will often call for environmental indemnities, often relate to a much larger spaces, may include complex terms for assignment or subletting, involve substantial renovations of the premises by the landlord or tenant, etc. Because of these complexities, the average business person, whether tenant or landlord, will likely want to have a commercial lease reviewed prior to executing it.
We act for both tenants and landlords on commercial lease matters. Obviously our goal when acting for a tenant is different than when acting for a landlord. When acting for the landlord, our objective is to secure the tenancy and the performance of the tenant’s obligations as much as possible. When acting for the tenant, while still wanting to secure the tenancy to allow the tenant to operate its business from the premises with a secure tenancy free from interference by a landlord, we also seek to minimize any negative aspects of a lease (hidden fees and costs, restrictive terms that could impede a business, etc.) or make sure that the tenant is fully aware of such terms and costs and understands them prior to executing same.
Should you wish to discuss your commercial leasing needs, please feel free to contact us.