While price is often the primary reason a tenant chooses a particular location, it is important to pay close attention to other provisions when negotiating a commercial lease, provisions that may benefit you years after the execution of the lease. With vacancy rates remaining relatively high, landlords are more than willing to incentivize leases, providing such benefits as free rent or improvement allowances, in order to retain existing tenants and attract new tenants. These incentives are traditionally negotiated up front when a term sheet or letter of intent is being prepared.
Examples of Incentives in Commercial Leases
- Non-Disturbance Clause: In the event a landlord defaults under a loan obligation, the foreclosing lender will not terminate the tenant’s lease.
- Lien Rights: Many landlords are releasing any lien rights to a tenant’s personal property on the premises. This means that if a tenant defaults, the landlord would not have a lien against such property and be able to seize it to pay off past due rent.
These are just two examples of the many incentives landlords are typically now willing to incorporate in commercial leases.
In order to fully understand the terms of your new commercial lease or to better help negotiate the terms of your lease, we recommend enlisting the help of an experienced real estate attorney, like the ones found at Offit Kurman Attorneys at Law.
If you have any questions about Negotiating your Commercial Lease, please contact Offit Kurman real estate attorney and chair of the firm’s Chair of the Real Estate Land Use and Zoning Practice Group William E. Erskine at 301.575.0363 or firstname.lastname@example.org. Mr. Erskine is both a business attorney and real estate attorney, whose practice is focused primarily on commercial litigation, construction litigation, real estate, zoning, and land use matters.
Offit Kurman Attorneys at Law: Real Estate Law Practice Group
Real estate is fundamental to most businesses. At Offit Kurman Attorneys at Law, the experienced and results-driven attorneys in our Real Estate Law Practice Group are experienced and highly qualified to help clients in all aspects of real estate law, including the drafting and negotiating of contracts for the purchase and sale of real estate, assisting with real estate financing and development issues, assisting with land use and zoning assessment matters, and, of course, drafting and negotiating real estate leases
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