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Leasing Traps You Must Avoid

Thinking of leasing commercial real estate? Guard your interests!

There are no ‘standard contracts’ for CRE leasing, so you need to read and understand everything before you sign. Verbal discussions or even an email about a specific point in the lease are not enough. If it is not in the final lease document, it will not be enforceable.

For spaces in a shopping center or building, make sure the lease is clear about when the rent and/or NNN expenses (operating costs for the) is to be paid. You could find yourself paying rent before the center opens.

Watch out for language that would allow your landlord to move your business at any time, or even cancel your lease if you sell the business.

These just a few of the traps. CRE leases are one instance where the help of a competent professional is the best course.

#leasing #tenant #negotiation #contract

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