Businesses – no matter how small or big – rest on sales and a good lease. The terms of a lease matter a great deal. Small businesses, in particular, do not have the financial backing of a central headquarters if they have a bad month. If your lease requires you to pay an exorbitant amount of fees, that could affect whether you stay open. Commercial leasing is just like any other business. They want to maximize profits and minimize the work on their end.
At Freundlich & Littman, LLC, we understand the dynamic and important relationship that exists between a business and their landlord. Problems often arise between the two parties. We are here to help businesses navigate the challenges that come with commercial leasing.
What Is Commercial Leasing?
Commercial leasing is the process by which a landowner or leasing company rents out a plot of land or storefront to renters. Business owners cannot just set up shop. Often, business owners need to contact and seek approval from the landowner before proceeding with the business.
Potential business owners meet with the landowner and negotiate a contract. Even large franchises need to deal with leasing if they do not own the building. The lease tends to happen in two ways. Either the landowner or leasing company will have a form lease or they will create one based on the negotiations.
More often than not, a commercial lease is not a form lease. A form lease is a standard lease for the company. Likely, the landowner will not entertain changes to a form lease. Landlords craft these leases over time to accommodate preferences or previous problems. With a looser commercial lease, the landlord will engage in more negotiations.
It is more common that the landlord or leasing company will negotiate the terms of the lease. It is, therefore, imperative to understand the lease. You could be signing a worse lease than your neighbor. Understand your needs and have legal counsel look over the document to make sure it is legally sound before agreeing to it.
No matter how you negotiate the lease, you must do one thing above all else. You must obtain and sign the lease. A court will not honor an oral lease in many situations. A lease is essentially a contract in the eyes of the law. It is far harder to prove the terms of a commercial lease if you did not reduce the terms into writing. Get a commercial lease written down. Sign it. Keep a copy for your records as well as addendums or updates to the commercial leasing contract.
Commercial vs. Residential Leases
If you have never obtained a commercial lease before, the extent of your knowledge stops at residential leases. In this vein, it is important to understand key differences between a residential and commercial lease.
What are the key differences between a residential and commercial lease? The key differences are few but important.
Commercial Lease Key Issues
No matter the commercial lease you decide to sign, include these key terms:
This list is not exhaustive. Contact legal advice to learn more.
Commercial Lease Lawyers
We are your greater Philadelphian commercial lease attorneys. We routinely handle legal issues for businesses of all sizes and wealth. If you are experiencing difficulties with your commercial lease or landlord, let us help you fight for your legal rights.
We can help with commercial lease negotiations, commercial lease disputes, or any other legal issues surrounding your commercial lease or your business.