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Business Lease Agreement

Interested in renting a commercial property? While this can be a great way to increase income, keep in mind that a business lease agreement is not as simple as it may seem.  As with every major transaction, a large amount of paperwork will be involved. When this is the case, it is best to have a lawyer review all contracts before any signing is done.

Need assistance regarding a commercial lease?  Our Commercial Real Estate Lawyers can help.

If you or someone you know has ever rented an apartment, a lease was required to be  signed beforehand. The concept is very similar to that of a business lease agreement. However, a business lease agreement contains many stipulations and is much more complex than simply renting an apartment. Most people usually won't take the time to read each page of a business lease agreement carefully, and even if they do, they don't necessarily understand everything they read. Also, depending on the type of commercial real estate that is going to be leased, there may a specific type that will need to be signed.

A business lease agreement can be divided into any of the following categories:

• Shopping Center Leases
• Net Leases
• Land or Ground Leases 
• Triple Net Leases
• Gross Leases

Know exactly what is being signed before doing so. Understand what is and what is not going to be included in your business lease agreement. For example, is occupancy insurance required? Does your rent include utilities such as HVAC and electricity? How long is the commitment? Unlike apartment rentals which are usually only one year, a typical commercial property lease can range anywhere from 3 to 5 years. If a business lease agreement is signed without proper understanding, the renter's business, profits, and overall finances can be drastically impacted.

Need assistance regarding a commercial lease?  Our Commercial Real Estate Lawyers can help.