Part 11*: Who pays for utilities in a Commercial Lease? It depends. In many office leases, electric is built into the rent. For example, a Tenant may pay base rent […] Read more
Part 10*: How is the “Term” of the lease defined in a commercial lease agreement? How does a renewal term/extension term work? Each lease is structured differently. Some leases have a fixed term, such as five years. Other leases may have an […] Read more
Part 9*: What do the terms “base rent” and “additional rent” mean in a commercial lease? In some lease agreements, the Tenant agrees to pay base rent plus additional rent. Additional rent may include taxes, insurance, […] Read more
Part 8*: What does the term “free rent” mean in the context of a commercial lease? Some commercial Landlords will offer “free rent” to a Tenant on a long-term deal. The “free rent period” usually occurs […] Read more
Part 7*: When does the “rent commencement date” occur in a commercial lease? The rent commencement date may or may not align with the commencement date in a commercial lease. In some cases, […] Read more
Part 6*: What is the significance of the “commencement date” in a commercial lease? While the lease commencement date is often a simple matter, in some cases, it may be more complicated. For example, […] Read more
Part 5*: What role does the Personal Guaranty play in a commercial lease? If the Tenant is a business entity, most landlords will require some form of personal guaranty. Without a personal guaranty, […] Read more
Part 4*: Who are the parties to a commercial lease? Many Landlords will form a special purpose business entity to own the Building. The business entity may be used for […] Read more
Part 3*: What are the different types of commercial leases? There are many different types of commercial leases. A “triple net” lease means that the Landlord’s taxes, common area maintenance […] Read more
Part 2*: What is a commercial lease? At its core, a commercial lease is an agreement whereby the owner of real property grants a leasehold estate to […] Read more