Real estate issues are oftentimes both complex and stressful. When dealing with commercial leasing, you must have an experienced Pennsylvania real estate attorney on your side to help guide you through this time.
What is a Commercial Lease?
A commercial lease is a contract between a landlord and a business for a rental property. The majority of businesses want to rent a property instead of buying it, as this requires less capital. If you are looking to rent a property, you should know that commercial lease agreements are more complex than residential leases. This is because the terms can be negotiated and may vary from lease to lease. Important terms that are often found in commercial leases can include, but are not limited to the following:
- Rent amount
- Rent increases
- Security deposit
- Length of the lease
- Description of the property
- Use clause
- Exclusivity clause
- Assigning and subletting
Types of Commercial Leases
There are different types of commercial leases that a business may choose, depending on the results they wish to achieve. Some of those leases are as follows:
- Net Lease: For any commercial lease. These leases require a tenant to pay rent, some or all taxes, maintenance, and insurance.
- Gross Lease: This is often used for office and retail leases. In gross leases, a landlord charges higher rent but includes costs such as taxes, insurance, and maintenance.
- Triple Net Lease: This type of lease is usually preferred by commercial landlords because it requires the tenant to pay for rent, taxes, insurance, and maintenance.
- Percentage Lease: This lease requires a base rent payment and a percentage of the monthly sales to be given to the landlord. It is usually used for retail leases.
How Can an Attorney Help?
When dealing with commercial leases, many people wonder if they need an attorney. The truth is, several legal issues may arise during an agreement that can be avoided if an attorney reviews it before you sign. An attorney can examine the following factors of a lease agreement:
- Whether the terms of the lease accurately reflect the business deal
- Rent and other financial obligations, including taxes, insurance, and maintenance
- The rights of the tenant to use common facilities, such as parking lots, loading areas, trash collection areas, etc.
- Options to extend or terminate the lease
- Risks associated with the lease
Contact our Firm
Friedman Schuman is an experienced and dedicated legal resource for clients throughout Pennsylvania. We proudly serve clients facing a wide range of legal matters. If you require the services of an effective attorney, please contact Friedman Schuman today to schedule a consultation.