how do i find an attorney to review and extend a commercial lease

Do I need a lawyer to review a commercial lease?

Your best bet is to find a lawyer who regularly represents small businesses. These lawyers are used to working with commercial leases and the problems that come with them. They understand the ins and outs of business tenancies and can often suggest effective strategies that general practitioners or specialists in other fields don't know about. It's a good idea to find a lawyer …

How can I further discuss my commercial real estate lease?

They are experts in commercial real estate and landlord/tenant laws. Here are some of the things that a commercial real estate lawyer can do for you when you enter into a lease: Prepare and review leases ; Negotiation and re-negotiation ofleases ; Give legal opinions and advice; Represent you in landlord/tenantlitigation disputematters; Lease Provisions that are Problematic. There …

How much does it cost to hire a commercial lease lawyer?

Dec 02, 2015 · 1. The very act of hiring a lawyer shows your landlord that you’re serious and can’t be easily pushed around or deceived. Landlords will be less likely to overstep knowing you have a lawyer on hand...

Why do I need a commercial real estate attorney?

Sometimes a lawyer will quote you a flat fee for a specific job—for example, the lawyer may offer to review your commercial lease for $450. In a flat fee agreement, you pay the same amount regardless of how much time the lawyer spends on the particular job.

Why do you need a real estate attorney to review a commercial lease?

Having a real estate attorney review your commercial lease makes sure you understand all of the provisions of the lease, it helps you avoid any traps, it allows you to know what changes to request, and helps avoid any mistakes. Commercial leases are long and complicated.

Who reviews commercial leases?

Commercial leases are often written in favor of the landlord. It’s crucial you get that commercial lease reviewed by an attorney before signing. Call Us (407) 259-2426. Get a Free Consultation. » Practice Areas » Real Estate Law » Commercial Lease Review.

Why are commercial leases considered high risk?

These clauses may be especially high-risk due to your business type, because of economic conditions, because the clauses are poorly worded, or some other reason.

Why is commercial lease bad?

Even worse, a bad commercial lease could leave you and your business on the hook for large, unsustainable rent increases, costs, and fees.

What do you need to know about a lease?

You need to know what limits the lease puts on the landlord and what options you have should the landlord violate those limits. You also need to understand what you are promising to do and what actions the landlord may take should you fail to keep your promises .

Why do you need a lease review?

This helps free your time and helps ensure that you get a lease that is better suited to the needs of your business. You may decide that the lease has too many problems and that the situation is too risky. In this case a lease review will have saved you from making a business move that exceeded your risk profile.

What is a real estate attorney?

A real estate attorney is fluent in the language of commercial leases. When you have a real estate attorney review your commercial leases you are getting someone who speaks the language work through the complicated document. Even if you are an experienced businessperson, a real estate attorney will notice nuances in a lease agreement that you miss.

Why do you need an attorney to review a lease?

As we have eluded to in the previous points, perhaps the most important reason to have an attorney review your lease agreement is that commercial leases are usually written by the landlord (or more often their attorney), and this means that the contract will be worded in a way that is most favorable to the landlord.

How long does a commercial lease last?

Commercial leases typically run for three to five years or longer, and the tenant is usually required to provide a personal guarantee for the entire term of the lease. As personal guarantor, you lose all protection that your business entity may provide (e.g., LLC, Corporation), and you are personally on the hook for any unpaid rent, property damage, or other liabilities. Landlords usually do not want to remove the personal guarantor clause, but you may be able to negotiate some flexibility into it.

What is included in a commercial lease agreement?

Important points are usually agreed to, such as monthly rent, square footage being rented, term and renewal periods, security deposits and upfront rent, tenant improvement allowance, and many others. These conditions are often included in a letter of intent (LOI). A tenant should expect the points that were agreed upon and spelled out in the LOI to be accurately reflected in the lease agreement, but this is not always the case. A lawyer can thoroughly review the contract to make sure everything is accurate.

What is a lease for a coffee shop?

The lease defines the commercial activities the tenant is allowed to participate in, but the language may be too narrow. For example, if you are opening a coffee shop, you might also want to sell hats, t-shirts, and coffee cups with your logo on them.

Why is commercial space different from residential?

This is because use of commercial space is very different from the way a residential property is used. Pretty much everyone rents an apartment as a place to live, while a commercial property is rented for some type of business use. But each business is unique, and there are many specific ways you may want to use a commercial space, ...

Can a landlord sublet a commercial space?

Or you may be able to negotiate the right to sublet all or part of your commercial space to another party. A landlord may agree to this as long as they are able to approve the new tenant, and as long as the original lessee remains liable for any unpaid rent or property damage done by the new tenant.

What should be clearly described in a lease?

If a party to the lease will be doing any work to the premises, the scope of work should be clearly described to reduce the chance of a misunderstanding. Oftentimes, the work of the parties is described in exhibits attached to the lease. Carefully review any such exhibits and watch out for provisions in the exhibits that conflict with provisions in the body of the lease.

What happens if you are in a multi tenant commercial center?

If your premises are located within a shopping center or other type of multi-tenant commercial center where you will be sharing certain areas with other tenants, the provisions concerning such common areas may significantly affect your use and enjoyment of your leased premises, and your bottom line.

What is gross lease?

A lease is generally considered a “gross” lease or a “full-service” lease, if the monthly rent (a/k/a base rent) paid by the tenant serves to compensate the landlord for use of the premises and for the property taxes, insurance, and maintenance costs relating to the premises.

Why is a gross lease considered risky?

As a result, gross leases are viewed as being riskier to the landlord because the landlord must absorb any unexpected increases in such costs. Consequently, tenants typically prefer a gross lease.

What is double net lease?

A “double net” lease requires the tenant to pay the property taxes and the insurance premiums in addition to the minimum rent. A so-called “triple net” or “NNN” typically requires the tenant to pay its share of taxes, insurance, and maintenance costs in addition to the minimum rent .

How long do you have to decide to accept an expansion offer?

Typically, you must decide, within some set period (e. g., a week), if you wish to accept the offer. If you pass (or if you are deemed to have passed based on your silence), the landlord is entitled to lease the expansion premises on the same terms and conditions to others.

What to do if landlord refuses to give termination?

If the landlord refuses to grant an early termination right, consider requesting a shorter initial term along with one or more options to extend the term. In this way, after the initial term expires, you have the flexibility to decide whether you wish to stay or leave at that time. Assignment and Subletting.

Why do you need an attorney to check your lease?

It makes sense to have an attorney check your lease to protect your investment. The attorney understands your business goals and can make recommendations to correct any matters that may jeopardize your business interests.

What are the provisions of a lease?

There are certain lease provisions that are problematic and cancreate disputes between landlords and tenants. They shouldbe carefully reviewed by your attorney before you enter into a lease or renegotiate your lease. These provisions include the following: 1 Common area charges (CAM) 2 Signage 3 Use restrictions and zoning regarding the use of the space 4 Rent increases and methods used to calculate them 5 Tenant improvements. Who is responsible? 6 Options to renew 7 Insurance requirements 8 Assignments

How long is a commercial lease?

Commercial leases are typically 3 to 5 years in length. That will feel like an eternity if you are stuck with a lease that is seriously skewed to your landlord’s advantage whether its with arbitrary management fees or ridiculous eviction clauses.

What is lease protection?

It's the wording that you have to watch out for. A lease protects the Landlord, so it's favoured in their direction naturally as they are protecting their asset in which they receive cash flow, but a Tenant also has rights they need to be looked after.

Why do landlords need a lawyer?

1. The very act of hiring a lawyer shows your landlord that you’re serious and can’t be easily pushed around or deceived. Landlords will be less likely to overstep knowing you have a lawyer on hand who can and will initiate legal action at the first sign of wrongdoing. 2.

Can you sign a multi-million dollar lease without a lawyer?

Anyone considering signing any kind of multi-million dollar long-term lease/agreement including entry/exit clauses without involvement of a lawyer or subject matter expert should not be holding such level of "authority to decide" ...

Do lawyers pay for themselves?

3. (Good) lawyers PAY FOR THEMSELVES. No really, they do. While having a lawyer may initially be an extra expense, he or she seriously has the ability to maximize your return on investment by saving you hundreds or even thousands over the years. Hiring a lawyer (should) cost less than one month’s rent. It’s therefore worth at least seeing if your lawyer can get you a better deal for the length of your lease.

Is commercial lease review affordable?

Commercial lease review services are more affordable than you think, especially if you consider a legal expert from Groundworks Commercial Leasing, which has been called the “UBER” of law firms because there is no overhead or mahogany desks to pay for. You just get quality advice quickly and affordably.

How much does a lawyer charge per hour?

Paying your lawyer by the hour is the most common method. In most parts of the United States, you can get competent services for your small business for $150 to $250 an hour. Most lawyers bill in six-, ten-, or 15-minute increments. Understand that these are the smallest "chunks" of time that the lawyer will bill for, ...

How to secure a flat fee?

To secure a flat fee or cap, dangle the prospect of more work ahead. Explain to the lawyer that yours is a small business with a limited budget. Especially if you're just starting out, mention that you'll have other legal needs in the future if your business succeeds.

What is a retention letter?

a "retention letter" or a contract, detailing the lawyer's billing practices and describing the extent of the work the lawyer will do for you. In some states, lawyers must present you with a retention letter or contract. If the lawyer you've chosen has dispensed with these formalities, you may not care very much—after all, ...

What is flat fee agreement?

In a flat fee agreement, you pay the same amount regardless of how much time the lawyer spends on the particular job. When an attorney is highly recommended by others and the flat fee is moderate, this can be a great arrangement for you.

What to do when you have runaway hourly fees?

If you are concerned about runaway hourly costs, you can ask the lawyer to agree to a "cap," or an upper billing amount. This means that when the cap has been reached (or is near), the billing will stop (and the lawyer will stop working) until you authorize more work.

Do lawyers have to be free from government regulation?

Unlike physicians, for example, who have insurance companies and the government monitoring virtually every move, lawyers are free from heavy-handed regulation. As a result, many choose to avoid bureaucratic paperwork, which they regard as a time-consuming nuisance.

Your Attorney Can Help You Get A Better Deal

The essence of negotiating an agreement is for each party to get the best deal they can possibly get. However, it will be very difficult for you to do this on your lease when you can barely understand the terms of the thing.

Let Us Help You Review Your Commercial Lease

The real estate lawyers at Jurado & Farshchian, P.L. have several years of experience reviewing and negotiating commercial lease agreements in Miami. Call us today at (305) 921-0440 or send us an email to [email protected] and let us add you to our list of satisfied clients.

Jennie Farshchian

Jennie’s current practice focuses on residential and commercial real estate transactions. She specializes in drafting, reviewing and negotiating leases, purchase contracts, deeds, and other real estate-related documents; handling title issues; and representing lenders, buyers and sellers in the conveyance of commercial and residential real estate.