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At the beginning of a commercial lease, everyone assumes that there will be no problems between the landlord and the tenant. However, disagreements can and may arise, and it is best to understand the framework of how disputes are resolved before your tenant signs the commercial lease. A sublease is an agreement between the lessor and the taker that allows someone else to use all or part of the space. In some cases, a company may want another company to share space – and rent. In other cases, the tenant may want to leave before the term of the tenancy is complete and let someone else take over the lease to avoid the need for renegotiation. In addition, homeowners often develop their own methods of measuring laudable surface. An owner can measure z.B. from outside wall to exterior and include questionable “public” areas such as air ducts. Some buildings seem to be measured, from garge to garbule, fa├žade ornaments that have nothing to do with a tenant`s utility space. While it is always best for your lawyer (preferably a commercial real estate lawyer) to review your agreement, here are some of the more common terms you should be aware of before you sign. Basic year. Office tenants are generally responsible for increasing construction costs and property taxes on a basic basis – either a base year or a cost stoppage.

These escalations can easily exceed the base rent, and the courts will generally apply the terms of a tenancy agreement you sign, no matter how much your rent may increase. It is therefore important to understand the mechanics of climbing formulas. Also be clear about the area that will be rented. Many commercial leases cover both the total area and the useful area of the square metre. This can help when negotiating the price per square metre, if the rental price is fair and what uses are allowed within the space. Capital improvement. Investments require special attention when negotiating a lease. The operating expense clause should generally exclude them from the operating costs for which you are charged. A doctor in Suffolk County, New York, signed an 8-year lease for the offices. Less than a year later, the building burned down. The landlord filed a complaint to continue to accumulate rent and won, even though he was not obliged to repair the building.

New York law would have protected the doctor from this kind of thing, but the lease contained a clause that stated that the rent would not decrease and that his liability under the tenancy agreement would be maintained even if a victim destroyed the building. Indeed, the doctor has signed his legal rights.6 In addition, many owners create an arbitrary loss factor. Once they have determined the size of a room, they simply increase the number by 25%, say, and they indicate the rental area. If only one meter in the building is connected to the supply company, you or your landlord can install a separate meter to measure the electricity you consume.