Commercial Lease Negotiations
These days, commercial leases can be quite complex. Commonly, negotiating commercial lease terms comes into play. In many cases, it’s prudent to get competent legal help when negotiating commercial leases. Contact Olen Law Office for help.
What Is a Lease?
In order to discuss key aspects of lease negotiations, we need to understand just what a lease is. Simply stated, a lease is a legally binding contract regarding the use of a property. In fact, it can be legally binding even if it’s not set down in writing.
Each lease is unique and can have a wide variety of provisions within its structure, especially when it comes to commercial properties and usage.
Commercial Lease Negotiations – How and What To Negotiate
As you consider your commercial leasing needs and options, you’ll want to be sure to address the following:
- How will the property be used? It’s absolutely important to define in the lease exactly what the business purpose of the property to be leased will be. Indeed, if the property is to be used as a retail outlet, the lease will need to define what the hours of business are proposed to be.
- Is the property subject to zoning codes? Most leases stipulate that the property is to be used “as is.” However, in Pennsylvania, over 50 percent of the townships have zoning laws. It’s imperative that the prospective lessee research exactly what the zoning regulations are. If permits are required, they should be obtained before a lease is signed.
- What length of the lease is best? Most landlords prefer a long-term lease. This is because they want to secure long-term rental obligations. A business, however, may fail. The landowner may still want their rent for the whole of the lease term. Negotiating an “out” clause in a long-term lease is a prudent step to take.
- What are the landlord’s rights? Landlords have rights in Pennsylvania. Provisions such as the “Acceleration Clause” and the “Confessions of Judgment” can be used to a lessee’s detriment. These concerns can be mitigated by negotiation before a lease is signed.
Connect With a PA Commercial Lease Attorney for Assistance
As you can see, there are many legal issues involved in commercial leasing. As you move forward, make sure that your commercial lease is carefully negotiated. Be sure to utilize the assistance of a skilled Yardley real estate attorney. Contact Olen Law Office to learn more.