attorney lease commercial nj what to look for

What to look for in a commercial lease?

10 Things to Look for in a Residential or Commercial Lease 1. The parties and the property Your lease will identify the landlord, the tenant, and the property, or “premises." Make... 2. The length, or “term," of the lease This is the amount of time you are legally allowed to occupy the property ...

How can a commercial real estate attorney help you?

A commercial realtor or real estate attorney can help you understand your responsibilities and the commercial lease terminology that's used in your area. 7. Pets If you have pets, make sure your residential lease allows them.

Can you negotiate a commercial lease?

Your commercial lease is a key element of your business. Making sure the lease protects you and covers all situations will allow you to conduct business with peace of mind. Here are a few tips for negotiating your lease. Commercial rental applications are easy to fill out, but lease clauses can be confusing or undesirable.

What are the terms of a commercial lease?

The length, or “term," of the lease This is the amount of time you are legally allowed to occupy the property and legally obligated to pay rent. For residential leases, the term is often one year. Commercial leases typically have multiyear terms. 3. Lease extensions or “holdovers"

What should you watch out for in a commercial lease?

10 Things to Look for in a Residential or Commercial LeaseThe parties and the property. Your lease will identify the landlord, the tenant, and the property, or “premises." ... The length, or “term," of the lease. ... Lease extensions or “holdovers" ... The rent. ... Security deposit. ... Utilities. ... Pets. ... Other tenant rights and responsibilities.More items...•

What questions should I ask a commercial lease?

Questions to Ask When Viewing a Commercial PropertyWhat type of commercial lease is being offered? ... What is the minimum lease term? ... What amenities are included? ... What insurance coverage is required? ... How much parking is allotted to the renter? ... Is there room for expansion? ... Can you make changes to the office space layout?

What are 3 things that should be included in a lease?

These are eight clauses that a landlord should include in a lease agreement in California:Security Deposits. ... Specific Payment Requirements. ... Late Rent Fees. ... Rent Increases. ... Notice of Entry. ... Rental Agreement Disclosures. ... Gas and Electricity Disclosure. ... Recreational Marijuana and Rentals.

How do you evaluate a commercial lease?

The most basic equation for calculating a lease payment takes the number of square feet times the cost per square foot, then amortizes that over a 12-month span. For example, if you have 1,000 square feet and the cost per square foot is $12, the annual lease amount would be $12,000.

What costs are involved in renting a commercial property?

Six costs to consider before leasing a business premisesRent for business premises. ... Building insurance for business premises. ... Service charges for business premises. ... Costs when requesting a landlord's permission. ... VAT payable on business premises. ... Other costs when leasing business premises.

What is the most common type of commercial lease?

A Triple Net Lease (NNN Lease) is the most common type of lease in commercial buildings. In a NNN lease, the rent does not include operating expenses. Operating expenses include utilities, maintenance, property taxes, insurance and property management.

What is the rule of lease agreement?

It is a legal agreement which gives the lessee the right to occupy the property for the tenure mentioned on it, but does not give them the right to own it.

What are the essential elements of a lease?

The essential elements of a lease are as follows:Parties- The parties to a lease are the lessor and the lessee. ... Subject matter of lease- The subject matter of lease must be immovable property. ... Duration of lease- The right to enjoy the property must be transferred for a certain time, express or implied or in perpetuity.More items...

What are the basic components of a lease agreement?

Here are some of the most important items to cover in your lease or rental agreement.Names of all tenants. ... Limits on occupancy. ... Term of the tenancy. ... Rent. ... Deposits and fees. ... Repairs and maintenance. ... Entry to rental property. ... Restrictions on tenant illegal activity.More items...•

What value is most commonly used for commercial property?

The Income Approach Also referred to as the Income Capitalization Approach, this tactic is the one most commonly used in commercial real estate transactions. The value is established here by estimating the property's income using the capitalization rate (commonly referred to as merely the cap rate).

How do you negotiate a business lease?

5 Tips for Negotiating a Commercial LeaseEvaluate the Length of the Lease. ... Research Comparable Rents. ... Look for Hidden Costs. ... Ask for Favorable Clauses. ... Check the Termination Clause Closely.

What is the ideal cap rate?

Generally, a high capitalization rate will indicate a higher level of risk, while a lower capitalization rate indicates lower returns but lower risk. That said, many analysts consider a "good" cap rate to be around 5% to 10%, while a 4% cap rate indicates lower risk but a longer timeline to recoup an investment.

What is a lease in land law?

A lease can be defined as a contractual relationship between two parties which involves the granting of the right to possession of the whole or part of an estate by the owner to another for a fee, and for a specific period of time, while the owner retains a reversionary interest in the property.

What is the difference between rent and lease?

The main difference between a lease and rent agreement is the period of time they cover. A rental agreement tends to cover a short term—usually 30 days—while a lease contract is applied to long periods—usually 12 months, although 6 and 18-month contracts are also common.

How is a lease created?

Leases normally have to be created by deed. However, certain leases can be created under section 54(2) Law of Property Act 1925 without the need for any writing at all. For a lease to come within section 54(2), it must: be for a term not exceeding three years.

What does a lease outline apex?

The obligations of renters and landlords. What does a lease outline? obligations of renters and landlords.

About New Jersey Commercial Lease Agreement Lawyers

Our New Jersey lawyers help businesses and individuals with their legal needs. A few of the major industries that represent New Jersey's economy include life sciences, manufacturing, and transportation and logistics.

Meet some of our New Jersey Commercial Lease Agreement Lawyers

I have been practicing law for 35 years. In addition to my law degree, I hold an MBA. I've created six companies, currently act as outside counsel to another 12, and have been an advisor to more than 500 startups and entrepreneurs.

What is commercial landlord tenant litigation?

One of the most common types of commercial landlord-tenant litigation is evictions. When a tenant fails to adhere to the terms of their lease, or when the lease expires, a commercial landlord may have the right to evict. At the Law Offices of Jonathan Fleisher, Esq., we are well-versed in the requirements for a commercial eviction. Parties to eviction litigation must understand the nuanced statutory requirements.

Who must follow legal and contractual notice requirements?

The landlord must follow legal and contractual notice requirements

Do landlords have to give notice of eviction?

The procedure for eviction depends on the grounds for eviction. When the ground for eviction is nonpayment of rent, the landlord does not need to provide any notice to the tenant before filing for eviction unless the lease so requires. However, for any other grounds, a landlord usually has to serve the commercial tenant with notice to cease (if required by the terms) or a notice to quit and a demand for possession.

Can a lease be terminated without cause?

A lease can also be terminated without cause, such as when the lease agreement specifies that either party can end the tenancy early without cause by providing notice .

Who does the service of process in New Jersey?

Service of the complaint and summons is usually completed by a sheriff’s officer , but it can be done by any other authorized person. For landlord-tenant actions, the New Jersey service of process requires:

Can a landlord file a lawsuit against a tenant?

Even when not seeking an eviction, a landlord or tenant may have cause to file suit based on breaches of the lease , unpaid rent, or property damage. These areas are typically governed by the terms of the lease, as well as any applicable state landlord-tenant law. If you are considering filing a lawsuit in a commercial-landlord tenant dispute, consider contacting an experienced attorney to find out if you have a strong case.

What is Typically Included in NJ Commercial Leases?

Although a commercial lease is usually custom-built to the landlord’s specifications , the following basic information can be found on most leases:

What is commercial lease?

Like a residential lease, a commercial lease is a legal agreement between a landlord and tenant concerning the use of a space for a specified period of time in exchange for rent. However, there are some important differences between them: 1 A commercial lease is not subject to the same consumer protection laws that residential leases are, such as limits on security deposits or expectation of tenant privacy. 2 Commercial leases tend to have longer terms than residential leases and are more difficult to change or break once signed. On the other hand, businesses have different needs, and landlords are usually more open to negotiation on commercial leases than residential leases. 3 Whereas residential leases usually have standard forms, commercial leases are more customized by the landlord. It is important to speak to an attorney when reviewing these unique contracts.

Is it important to sign a commercial lease in New Jersey?

Finding the right space is critical to the success of your business. Signing a commercial lease is an important decision and should be considered very carefully. Experienced legal counsel can ensure that the terms of the lease are clear and fair, and that you understand what you are agreeing to when you sign. Contact Himelman & Himelman today to discuss your New Jersey commercial lease.

What is a commercial realtor?

A commercial realtor or real estate attorney can help you understand your responsibilities and the commercial lease terminology that's used in your area.

What to name a business when signing a lease?

If you are signing a commercial lease and you have a business entity such as a corporation or LLC, you want to name the business—rather than you personally—as the tenant. This helps protect you from liability if something goes wrong. 2. The length, or “term," of the lease.

What is a lease extension?

Lease extensions or “holdovers". Many residential leases say that, at the end of the original lease term, the lease converts to a month-to-month tenancy. This means you can continue to live at the property and pay rent, but either you or the landlord can end your tenancy on 30 days' notice.

What is a triple net in a residential lease?

Commercial leases may use industry terms like “triple net" to describe landlord and tenant responsibilities.

How long is a lease term?

This is the amount of time you are legally allowed to occupy the property and legally obligated to pay rent. For residential leases, the term is often one year. Commercial leases typically have multiyear terms. 3.

Why is it important to have a rental agreement?

The terms of your rental agreement are important for protecting your rights as a property owner.

When does a commercial lease expire?

A commercial lease is more likely to expire at the end of the term , though it may be renewed for an additional time period.