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Commercial Lease Attorneys

Whether you are acting as the tenant or the landlord, it is necessary to have a good understanding of how a commercial lease works. When you work with an attorney who specializes in commercial leases, you can proceed with the commercial rental process with less trepidation.

Types of Commercial Leases

In order to familiarize yourself with a commercial lease, you should review the types of commercial leases first. The following information will serve as a quick overview. A percentage lease is often used in retail business and mall rental transactions. Landlords receive the base rent plus a percentage of the sales.

  • A net lease favors the interests of the landlord. In addition to the rent, the tenant must pay a part or all of the insurance, taxes, or maintenance.
  • A double net lease also works in favor of the landlord. This lease agreement requires that the tenant pay the rent, insurance, and taxes.
  • In a triple net lease, the tenant is obligated to pay the taxes, insurance rent, and maintenance.
  • Fully serviced leases are used for some industrial and retail sites as well as offices. The landlord, for this type of lease—also known as a gross lease—pays part or most of the normal costs. These costs are frequently passed as a load factor in the tenant’s rent.

Things to Look Out for When Signing a Lease

In order to make sure you are signing a lease that meets with your criteria, you need to pay attention to some of the crucial terms or conditions. These terms or conditions are represented by the following:

  1. The lease term or length of the lease should be acknowledged. You need to know when the lease starts and your options for renewal.
  2. You also need to pay attention to the amount of rent and allowable escalations or increases. Understand how the increases will be calculated.
  3. Ask whether the rent includes the insurance, maintenance, and property taxes (as in a gross lease) or whether you will be assessed for the items separately (as in a net lease).
  4. Improvements or modifications should be covered in the lease too. These changes are known as build outs if the space you are renting is new and is being completed, per your specifications. Improvements also include fixtures that are integrated into the space. You need to know who will pay for the fixtures and who will end up owning them at the termination of the lease. Generally, the landowner takes possession at that time.
  5. It is also important to know if the space can be assigned or subleased to another tenant.
  6. Find out if an option exists where you can expand the space or renew the lease.
  7. Know how and if the lease can be terminated. Note the notice for termination requirements and whether the tenant receives a penalty for terminating a lease early.
  8. The lease should show if disputes must be arbitrated or mediated as an alternative to going to court.

We Have Experienced San Diego Lease Lawyers

It’s important to setup your lease agreement correctly the first time around. We can help you draft a lease contract, navigate a complex lease dispute, or help you understand your current residential, commercial, business, or real estate lease.

  • We help draft ironclad lease agreements
  • We review lease contracts to make sure you understand the risks
  • Triple net lease, percentage lease, double net lease, or gross lease
  • Business lease agrements
  • Sophisticated lease wraps for real estate and business owners

Commercial leases can be a great tool for any business owner or real estate person. However, setting up the right lease, and negotiating your terms should be taken with great care. We help you identify lease risks, lease disputes, and lease default situations.

Unlawful Detainer

Because commercial leases are negotiable, it is good to have a legal advocate, such as Equity Legal, on your side, whether you are a tenant or landlord. Know your rights in this respect and find out if there is a recourse when a lease is broken. Also, ask about unlawful detainer. An unlawful detainer is when a tenant will not leave a property after a lease terminates.

Evicting a Tenant

In addition, it is essential that a landlord to understand the steps for a commercial eviction. When a tenant is not paying or seemingly ran out of money, a landlord should write and serve a three-day notice on the tenant. This is done to try and secure the rent. This must be done before eviction proceedings commence.

A Commercial Lease Letter

It is also essential to understand how a commercial lease letter, or letter of intent, works. This letter frequently serves as the first step toward drafting a commercial lease agreement. Basically, the letter indicates that both parties are ready to move ahead.


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