When dealing with commercial real estate, making contracts and agreements on your own is not advisable. There is a lot to keep track of when hashing out agreements on lease terminations and lease renewals, so we suggest that you have some professionals on your side. Our Long Island, NY real estate lawyers can help you with issues like this and any real estate questions that you have.
What Should I Know About Commercial Lease Terminations and Lease Renewals?
Leasing out real estate is sometimes complicated, but commercial real estate deals can get even more complex. One thing to remember about commercial leases is that they tend to last longer than residential leases. Most people are fine moving into an apartment for a year and then deciding later if they want to move or stay put. Commercial real estate renters are not going to like this.
These renters want consistency. They do not want to move into a property just to risk getting kicked out or priced out a year from now. So expect lease agreements and lease renewals to last for a few years. Your lawyer can look over any agreements and make sure that you are acting in your best interest when making deals.
What Can Be Negotiated in Commercial Leases and Lease Renewals?
When leases are originally negotiated, you and your prospective renter have a lot of things to talk about. You can cover matters like:
- Monthly rent
- The length of the lease
- Who is responsible for maintenance and repairs
- Who is paying for taxes, insurance, and utilities
- What happens if a tenant makes improvements to the property
You should also discuss how lease renewals will work at this time. Will there be new negotiations or will the terms of your initial lease mostly stay in place? You may want to make sure that you are free to change terms or lease to someone else entirely if market conditions have changed.
It is also advisable to go over the conditions for lease terminations when signing a contract.
What Should I Consider When Talking About Lease Terminations?
When discussing lease terminations, you want to make sure that the concerns of both sides are addressed. There could be a variety of reasons why you or your renter have decided to break the lease. Think about situations in which one party may want to change their agreement and answer some of these questions:
- What happens if I sell the building?
- What if my tenant misses one rent payment? Two? Three?
- Should my tenant be able to sublease if their business needs change?
- Will there be a lease termination charge?
Consult with an attorney and make sure that you are protected and that any commercial real estate agreements you make are ironclad.
Talk to a Legal Professional
So when you are crafting important real estate agreements, make sure that you are talking to pros who know this sector inside and out. Contact David A. Gallo & Associates, LLP and tell us more about your commercial real estate needs. We are ready to help you protect yourself and your assets.