Unlike most residential lease agreements, commercial leases can sometimes involve rather complex issues. Specifically, if a commercial lease is improperly drafted, it can create serious legal consequences for land and business owners alike, including time away from work and expensive litigation. Moreover, with negative changes in the economy and a struggling commercial real estate market, commercial lease agreements have become increasingly disputed.In general, commercial lease agreements often involve a significant amount of forethought and skilled drafting due to the varying business interests at stake. In other words, while commercial lease agreements tend to be more flexible, they are nonetheless binding and need to be negotiated, and drafted, much more specifically than residential leases. For example, businesses and landowners may require unique features and conditions included in their leases that are customized to their individualized needs.In today’s competitive business market, property owners need to be especially wary of how a lease is structured. Without taking special precautions, issues can arise such as:
- Ambiguities in the terms of the lease, including those related to the obligations of the parties under the agreement
- Questions as to whether a lease agreement can be modified
- Questions regarding the rights of the parties to terminate the lease
- Whether a tenant is in breach of the lease
- Uncertainty as to whether a property owner should evict his or her tenant based upon tenant non-compliance
A failure to anticipate and properly address the above issues can create serious legal headaches. Therefore, it is highly recommended that commercial property owners consult with an attorney with experience identifying the risks corporate tenants may present, and preventing legal problems in advance. Peter Mavrick has had many years of experience in assisting property owners with all types of commercial lease transactions and can add insight and knowledge in helping them protect their rights and interests throughout the entire process.