When negotiating a commercial lease, the below checklist will help identify issues that need to be addressed.
Name of Owner – What is the proper name of the entity that owns the premises? Who has authority to bind the entity?
Name of Tenant – Do the tenants lease in their own name or form an entity?
Guarantors – If an entity is formed, will there be guarantors?
Address of property – Specifically describe the location and dimensions of the space to be leased? Are there any dedicated parking or other amenities that need to be specifically identified?
Personal property – Describe what personal property is involved, if any.
Rent – How much is the rent? How often paid?
-Is it a triple net lease that requires you to also pay part of insurance, property tax
and maintenance, thereby increasing the monthly amount you have to pay.
Who pays for each item if not triple net lease.
-Remember that you have to pay sales tax on commercial rent payments.
Security deposit– How much is the security deposit? Under what circumstances can the Landlord make a claim.
Term – How long is the lease? How many options to extend are negotiated? What increase in rent occur over the life of the lease.
Usage – Does the tenant have an exclusive right to be certain kind of store. Are there any other use prohibitions?
Posted July 9, 2014