Commercial Leases
THINKING OF SIGNING A MULTI-YEAR LEASE CONTRACT? CALL US FIRST.
Whether you are a tenant or a landlord, the lease for your commercial space is one of the most important contracts you will sign. We can guide you through that process and ensure your interests are protected.
Tenant Considerations
For your business, the single biggest overhead expense is probably the staffing costs. The second biggest expense is the rent for your business premises. Unlike residential leases, commercial leases run for a fixed term and at the end of that term, you do not have the right to remain in possession. If there is no agreement to extend the lease, you must move out. Rent control does not apply either.
For most businesses, their location varies from “important” to “crucial” and for all, the fit up costs and inconvenience of moving are significant. When negotiating a new lease, landlords typically look for a significant time commitment from the tenant (5 year minimum is typical). So the lease contract is one of the most important contracts you will enter into. This is not a good place to be saving money by “doing it yourself”. Mistakes in negotiating a lease can have a huge impact on your business. We can help you negotiate a lease with the most favourable terms possible to position your business for success and to limit your risk. The time to speak to us is before anything is signed with the landlord. Landlords understand and expect tenants to seek legal advice before entering into a commercial lease.
We typically will review a your draft lease or offer to lease before it has been signed, then meet with you to review the key points, point out potential problems and offer suggested changes. Based on your input and instructions, we will then propose changes to the landlord or its lawyer and negotiations continue until an agreement is reached and the lease is signed.
The cost of negotiating a commercial lease is based on time spent and depends on the complexity of the lease and the length of the negotiations. Given the importance of the lease, it’s definitely a worthwhile expense. Give us a call and we will be happy to provide you with an estimate of your legal costs.
Landlord Considerations
A properly negotiated and drafted commercial lease is as important for landlords as it is for tenants. Your best tenants are the ones who pay on time, don’t cause headaches and stay to the end of their leases.
If you are a commercial landlord, we can offer tips on vetting potential tenants to increase the chances of landing a valued tenant. We can also negotiate and draft leases to provide the you with maximum protection and recourses in the event the tenant does not live up to its obligations. If you have several units to rent, we can craft a lease template for you to use as a starting point with all of your future tenants.
The cost of negotiating a commercial lease is based on time spent and depends on the complexity of the lease and the length of the negotiations but it’s money well spent. Give us a call and we will be happy to provide you with an estimate of your legal costs.