What do I look for when negotiating a commercial lease agreement?

by John Morey | Jun 03, 2015

Having a commercial landlord tenant attorney on your side from beginning can save you tons of headache and stress in the long run. Morey Law Firm, P.A. has assisted commercial tenants ranging from first-time business owners and startups to commercial landlords with properties throughout the state of Florida. We have negotiated with and against some of the largest commercial property management firms in the country.

As a commercial landlord there are several important aspects to the lease negotiation. Obviously, one of the most important issues to address is base rent. However, it’s important as a landlord that you also address your common area maintenance costs (CAM), percentage of sales rent, yearly rent increases, and renewal option terms. Landlords must also be careful when offering exclusivity terms to tenants in a particular type of business. All too often landlords provide overly broad exclusivity clauses which later prevent them from renting out to other viable occupants. Having an experienced commercial landlord attorney on your side can help you navigate many of these common pitfalls.

The unfortunate reality is that commercial tenants are often bear the majority of the risk in a commercial landlord tenant relationship. For instance, most commercial landlords will require that the business’s lease be personally guaranteed by a member of the renting business. This can often result in a business owner being on the hook for potentially millions of dollars. This personal guarantee is often one of the most important reasons that commercial tenants want to negotiate their lease to minimize their risk in some areas and maximize their benefits in others. For example, negotiating a comprehensive exclusivity clause can help ensure that no other competing tenants will move into surrounding properties and, thus, maximize a tenant’s likelihood of success.

Morey Law Firm, P.A. has assisted commercial landlords and tenants throughout the state of Florida. Our office is centrally located in Orlando, Florida and we provide personal service to all surrounding central Florida counties. If you are a commercial landlord in need of creating a lease, or a commercial tenant who needs help negotiating a lease agreement, call our office today to speak with a commercial landlord tenant lawyer.