Understanding the
Role of Business Lease Lawyers
Business lease lawyers play a crucial role in helping
companies navigate the complex world of commercial leasing. Whether you're a
startup looking for your first office space or an established business seeking
to expand or relocate, working with experienced commercial leasing attorneys
can make all the difference.
The Importance of
Legal Expertise in Commercial Leasing
Commercial leases are far more complex than residential
leases. They involve larger sums of money, longer lease terms, and a host of
legal considerations that require specialized knowledge. Some key aspects that
set commercial leases apart include:
·
Zoning restrictions and permitted uses of the
property
·
Build-out allowances and tenant improvements
·
Operating expense pass-throughs and escalation
clauses
·
Subletting and assignment rights
·
Liability and insurance requirements
·
Default provisions and remedies
Given the high stakes involved, it's essential to have an
attorney well-versed in commercial leasing law review any lease agreement
before signing. They can identify potential risks, negotiate more favorable
terms, and ensure your interests are fully protected.
Services Provided by
Business Lease Lawyers
Lease Review and
Negotiation
One of the primary services offered by business
lease lawyers is a thorough review of proposed lease agreements. They
will analyze every provision, explain the implications to you, and recommend
changes to better align the lease with your business needs and goals.
Your attorney can negotiate with the landlord on your behalf
to obtain more favorable terms such as lower rent, longer lease periods, more
flexible assignment/subletting rights, or reduced personal guaranty
requirements. They have the experience to advise you on what terms are
reasonable and customary in your market.
Lease Drafting
In some cases, business lease lawyers may draft the lease
agreement from scratch. This is more common when the property owner is an
individual or small business rather than a sophisticated commercial landlord
with a standard lease form.
Drafting a lease allows your attorney to tailor it to your
specific circumstances and include language to protect your interests. However,
most landlords will insist on using their own lease form as a starting point.
Build-Out and Tenant
Improvements
If you're leasing new space that needs to be built out or
customized for your business, your lease lawyer can assist with negotiating the
terms for construction.
Key issues to address include:
·
Whether the landlord or tenant will oversee the
build-out
·
The amount of any build-out allowance provided
by the landlord
·
Deadlines for completing construction
·
Provisions for delays outside your contractor's
control
·
Approval rights over plans and materials
·
Requirements for using union labor
·
Handling of cost overruns
Getting these details ironed out upfront can prevent
headaches and disputes down the road.
Subletting and
Assignment
During the lease term, your space needs may change. You
might outgrow your current space, downsize, or decide to relocate for other
reasons. Business lease lawyers can negotiate for subletting and assignment
rights that provide flexibility.
Landlords typically want to restrict subletting and
assignment as much as possible to maintain control over the tenant mix in their
building. But for tenants, the right to sublet unused space or assign the lease
to another party can be valuable.
Your lawyer can push to allow subletting and assignment
without the landlord's consent or subject to reasonable approval. They may also
negotiate parameters like whether you remain liable after assigning the lease
or are released from future rent obligations.
Dispute Resolution
Even with the most carefully drafted lease, disputes can
arise. Common issues include disagreements over operating expense charges,
responsibility for repairs, disruptions from other tenants, or allegations of
default.
Business lease lawyers can represent your interests in lease
disputes, working to resolve issues through negotiation or mediation when
possible. If litigation becomes necessary, they can vigorously advocate for
your position in court.
Having an established relationship with a skilled commercial
leasing attorney can be invaluable in navigating lease-related disputes. They
will already be deeply familiar with your lease and business circumstances.
Choosing the Right
Business Lease Lawyer
So how do you find the right business lease lawyer for your company?
Here are some key qualities and qualifications to look for:
·
Substantial experience in commercial leasing
law. Make sure they have handled deals similar in size and complexity to yours.
·
Familiarity with the local market. Leasing
customs vary by city and state. Choose someone who knows the norms in your
area.
·
Responsiveness and accessibility. You want an
attorney who will return your calls promptly and take time to address your
concerns.
·
Ability to explain legal concepts in plain
English. Avoid lawyers who speak in legalese. You should feel you understand
the issues and your options.
·
Reasonable fees. Look for an attorney whose
rates are in line with market standards and who offers transparency in billing.
Many work on flat fee or capped arrangements for lease reviews.
·
Positive references and reviews from other
clients. Ask for referrals or check the firm's reputation online.
Take the time to interview several lawyers and choose one
you feel comfortable working with long-term. Your business lease lawyer can
become a valued partner as your company grows and evolves over time.
In the world of commercial leasing, details matter
immensely. The wording of every clause can have major financial and operational
implications down the road.
Investing in experienced legal representation on the front
end can save you from costly pitfalls and provide peace of mind. You'll have
certainty that you understood what you were signing and negotiated the best
possible terms for your business.
While business lease lawyers can't eliminate all risk, they
level the playing field with sophisticated landlords and their counsel. Rather
than shying away from the expense, think of your lease lawyer as an essential
member of your advisory team, much like your accountant or insurance broker.
The next time you're considering a new commercial lease or renewal, make hiring a skilled business lease lawyer your first step. Your future self will thank you.
