Helping Clients Navigate Complex Legal Agreements

Most businesses require some type of physical space, whether it’s for retail sales, company offices, or housing inventory. Whether business space is at a premium in your area, you don’t have enough capital to buy, or you just don’t want to have to deal with the costs of ownership, renting commercial space can be a viable option for your business. Commercial lease agreements are a bit different than those that deal with residential spaces, so it’s important to be aware of your options and common pitfalls to look out for.

You wouldn’t buy a property without talking to a real estate agent and real estate attorney, and you shouldn’t enter into commercial lease negotiations without a commercial lease attorney either. A lawyer can help you review the contract to ensure you’re protected and represent you if there are any issues or disputes later on. Talk to the team at InPrime Legal to find out what services we offer and how we can help.

What Makes Commercial Leases Different?

It’s likely that you’ve entered into some type of lease agreement at some point in your life, whether it was for an apartment or a vehicle. While a commercial lease agreement is still a rental agreement between the owner of the property and the person leasing, they are unique in several ways.

Because commercial leases involve commercial property, the intended use of the property is different. If you are using the property as office space, the lease is likely to be straightforward. But other uses, such as industrial applications or even retail space, can require special provisions and that the property be zoned for that use.

With residential leases, the monthly rent is generally the same every single month. However, it’s common for commercial leases to pass on some of the monthly expenses and maintenance of the building from the owners to the renters. This can make it harder to budget accurately for your lease payment.

Commercial lease provisions also generally allow for more negotiation and customization of the lease terms. For example, there may be terms that relate to whether you are allowed to sublease the space or what kind of signage you can put up.

What Are Some Types of Commercial Leases?

There are several types of commercial lease agreements, and each has its own applications.

• Full-service or gross lease: The tenant pays one fixed monthly price, and the landlord handles all of the other property expenses.
• Net lease: The tenant pays a portion of the property expenses as well as the monthly rent amount.
• Percentage lease: The tenant pays a monthly base rent and pays a percentage of their gross revenue to the owner.
• Variable leases: The rent amount varies based on factors that can relate to the tenant or the owner’s finances.
• Ground leases: The tenant rents the land from the owner and builds on it.

The right type of commercial lease for your situation depends on what you want to use the space for, how much money you have to spend on rent, availability in your location, and whether you prefer to have fixed or variable expenses. A commercial lease attorney can help you determine the best fit for your business and assist in negotiating the terms.

What Are CAM Charges?

CAM charges are a common part of a commercial lease agreement. CAM stands for common area maintenance. These are additional charges on top of the base rent that the property owner passes on to the tenant. What’s included in the CAM charges can vary by lease, so it’s important to review this part thoroughly and make sure you understand what you’re paying for. Common things included in CAM charges include grounds maintenance, parking lot maintenance, and any expenses related to shared areas, such as bathrooms.

What Are Some Potential Challenges With Commercial Leases?

Because commercial leases are more complex and usually involve significant amounts of money, there are specific challenges that can arise. Commercial leases can require a lot of negotiation back and forth because of all of the different terms and degrees of customizability. An attorney can help streamline this process by reviewing the lease agreement, identifying areas of concern, and helping you negotiate more favorable terms.

Commercial leases also often involve long-term commitments, which can be problematic for startups and small businesses that may not have solid future projections. If the rent has a clause that allows for rent increases, it’s possible to end up stuck in a lease you can’t afford.

There may also be commercial lease disputes, such as disagreements over property maintenance, renewal terms, and early termination of the lease.

What Is a Force Majeure Clause?

Force majeure clauses are included in many commercial leases, and it’s French for “greater force.” This clause allows either the tenant or the landlord (sometimes both) to not have to complete their contractual obligations if there is an unavoidable and unforeseeable major event that prevents them from being able to do so. This can apply to both natural disasters, such as tornadoes and hurricanes, as well as “manmade” issues, such as cybersecurity breaches.

Whether you’re on the landlord or tenant side of a commercial lease, it’s important to work with an attorney who can do a commercial lease review and ensure your interests are protected. When you call InPrime Legal at 770-282-8967, you can get connected with a commercial real estate lawyer who can help you navigate these contracts. We work with clients all over Marietta and the greater Atlanta area and are experienced with all kinds of commercial lease applications.

Experienced Commercial Lease Lawyers

At InPrime Legal, we help commercial tenants secure better lease agreements.

Here’s why our work matters:

1. Financial Savings: We negotiate leases that can lead to significant cost reductions over the lease term. This includes negotiating lower rent, securing rent-free periods, and minimizing additional expenses like maintenance fees, taxes, and utilities.
2. Flexibility: We prioritize lease terms that provide flexibility, such as options to renew, expand, or sublease. This enables you to adapt to changing business needs as your company grows or market conditions evolve.
3. Risk Mitigation: Our careful negotiation process helps limit your exposure to risks, such as property damage liability, unexpected rent increases, or unfavorable terms in the event of early termination. We ensure that responsibilities for repairs, maintenance, insurance, and other liabilities are clearly defined to protect your interests.
4. Location Stability: We secure favorable lease terms that ensure long-term stability in prime locations, which is crucial if your location plays a key role in your business’s success. Consistent location helps build customer loyalty and strengthen brand recognition.
5. Operational Control: We negotiate terms that give you more control over your leased space. Whether it’s making improvements, securing signage rights, or restricting the landlord’s ability to lease adjacent spaces to competitors, we enhance your ability to operate your business effectively.
6. Exit Strategy: We define clear exit strategies, such as sublease or assignment options, allowing you to relocate or downsize without financial strain.
7. Business Continuity: Favorable lease terms are essential for maintaining uninterrupted operations and preventing disruptions from lease disputes, relocations, or other potential issues.

Our Experience Includes:

• Letter of Intent Review
• Lease Negotiations
• Lease Extensions
• Lease Modifications or Amendments
• Tenant Improvement Allowance Submittals
• Lease Assignments
• Subleases
• Lease Termination

Ready to Secure the Best Lease Terms for Your Business?

Don’t leave your commercial lease negotiations to chance. Let our experienced team help you secure favorable terms that protect your interests and support your business growth. Whether you need assistance with a new lease, renewal, or modification, we’re here to guide you every step of the way.

Contact us today to schedule a consultation and learn how we can help you achieve the most out of your commercial lease.