Before signing a contract with a commercial landlord, it is important to understand the terms and clauses that you might see. This is especially true if you have not rented a commercial property before since these leases are different than residential leases. 

Knowledge of what terms and clauses you will likely encounter will help you understand the lease you are signing. It can also help you avoid legal disputes down the road. We understand how the law works in regards to commercial real estate and have helped many clients with their cases. 

Important clauses and their meaning 

The following are some important clauses to be aware of when signing a commercial lease. 

  • Rental clause. This should detail information such as rental increases, how much of the operating costs you will pay as a tenant, if the landlord will allow deductions in rent for improvements and how to handle unexpected rental issues or increases.  
  • Parties clause. This details who the contract is between. It is a good idea to make sure that your business name is here and not your personal name.  
  • Term clause. This details when the lease term begins. This usually includes the need to carry insurance and pay rent. 
  • Description of the premises clause. This clause should accurately describe the area you are renting. This can be an entire building or even just a room, but make sure that the description is accurate.  
  • ADA compliance. The law states that you must maintain the accessibility of the premises to people who are disabled.   

Knowing how to read commercial rental contracts can make a world of difference when it comes to spotting inconsistencies. More information about this topic is available on our web page.