Commercial leases are far more complex than one for residential real estate. These are usually agreements between two parties that have more sophistication. There are far more variables and topics that need to be covered in the language. Here are some common terms of a commercial lease.
Lease type – There are several different types of commercial leases. The leases will defer on who must pay certain expenses. In some cases, the tenant may be responsible for maintenance costs and taxes on the property. In other cases, the landlord may cover maintenance.
Rent – the tenant will always owe a base rent for the property. There may be additional things for which the tenant needs to pay, such as For the use of certain facilities. There may be provisions that could escalate the red based on a certain formula or even decrease the rent if the tenant makes certain improvements.
Use Clause – The use clause governs how the tenant is permitted to use the property. They may only be allowed to use the property for certain purposes. The tenant may have a use restriction, or the landlord may guarantee them the exclusive right to conduct a certain type of business in the area. The tenant must ensure that their proposed use Falls within what is allowable under the lease.
Option terms – the lease may give the tenant the right to extend the agreement by a certain period. They may also have the right to purchase the property at the conclusion of the lease.
Contact a Miami Commercial Real Estate Attorney Today
Commercial real estate leases require negotiation on the part of the landlord and tenant. Attorney Daniel P. Diaz works with landlords and tenants on commercial real estate agreements. To obtain legal help, call us today at 786.256.3299 or message us online.
