Negotiating a Landlord Warranty in a Commercial Lease
When entering into a commercial lease, one of the key considerations for a tenant is the condition of the leased premises. In most cases, the tenant takes the premises in its "as-is" condition upon delivery, meaning that defects or issues with the space may become the...
Tips for Commercial Tenants: Protecting Yourself Against Your Landlord’s Foreclosure
When negotiating a commercial lease, many tenants focus on the immediate terms—such as rent, improvements, and the length of the lease—without considering the potential impact of their landlord’s financial health. However, it’s crucial for tenants to think through the...
Quick Tip for Commercial Real Estate Tenants: Capping Controllable Costs Under a Commercial Lease
When negotiating a commercial lease, one key aspect tenants should consider is negotiating a cap on controllable costs. A cap on controllable costs limits the amount by which certain operating expenses can increase annually, providing tenants with predictability in...
Fixed Rate Extension Options: Landlords Beware
In commercial lease agreements, extension options are a common provision that allow tenants to continue occupying a property beyond the initial lease term. One specific type of extension option is the fixed rate extension option, where the rent for the extension...
Tip for Commercial Real Estate Tenants: Negotiating a Cap on Controllable Operating Expenses
Under a commercial lease, tenants are typically responsible for various expenses associated with operating the property that are passed through from the landlord. As a result, the tenant bears the burden of increasing operating expenses, while the landlord, which is...
Tip for Commercial Real Estate Tenants: Negotiate for a Right to Make “Cosmetic Alterations”
When negotiating a commercial lease, one of the points that a tenant should ask for in nearly any lease is the right to make "cosmetic alterations" to the premises. Understanding and negotiating this right can meaningfully impact your business operations and overall...