Commercial Real Estate Lease Clauses
Here is a list of clauses which may or may not be part of a commercial lease. Nevertheless, you should consider each listed item as an important term of a contract that should be included during negotiations and it is critical to understand the consequences and obligations associated with each.
Practitioner's Check List of Areas of Concern and Due Diligence for a Commercial Lease1. Address of Property 2. Zoning of Property 3. Term of Lease 4. Rent a. If not flat, then what type? 5. Deposits 6. Expiration 7. Renewal Option 8. Floor Area 9. Commencement Date 10. Early Termination 11. Improvements 12. Prohibited Uses 13. Tenants Use 14. Exclusive Use 15. Title 16. Taxes 17. Insurance 18. Utilities (Direct) 19. Maintenance and Repairs 20. CAM (Common Area Maintenance) 21. Signage 22. Parking 23. Landlord Inspections 24. Vacation of Premises 25. Exterior and Structural Changes 26. Surrender 27. Quiet Possession 28. Landlord's Repairs 29. Hazardous Materials 30. ADA Compliance 31. Landlord Services 32. Defaults (Tenant-Landlord) 33. Estoppel Certificate 34. Condemnation 35. Fire or Other Casualty 36. Liability Insurance, Worker's Compensation, Property 37. Waiver of Subrogation 38. Notices 39. Indemnity 40. Co-Tenancy 41. Right of First Refusal 42. Not a Joint Venture 43. Successors and Assigns 44. Waiver 45. Memorandum of lease (Record) 46. Holding Over 47. Interpretation of Agreement 48. Attorney Fees 49. Broker's Commission 50. Choice of Law 51. Arbitration/Mediation
When should you seek help?It is vital to a the success of both negotiations of and fulfillment of a lease when an attorney is consulted early in the transaction. There are countless pitfalls and unwritten rules of law that attorneys have been trained to know and recognize. These pitfalls and unwritten rules of law are often not overt and can produce unintended obligations and consequences. While no ordinary person can be expected to know these pitfalls and unwritten rules, it does not provide a viable excuse or defense against a party's claim.