how much flat fee for attorney to review a commercial lease

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

Do I need a lawyer to review a commercial lease?

How can I further discuss my commercial real estate lease?

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. When an attorney is highly recommended by others and the flat fee is moderate, this can be a great arrangement for you.

What is a flat fee agreement with a lawyer?

 · The attorney I reached out to, from a reference, specializes in real estate and after doing some initial review and going over changes that need to be made, he said that total billable hours will end up being 4-6 hours at $340/hr. So the total may be as high as $2000.

What is the American rule for attorney fees?

In England, the loser of a court case pays the winner’s legal fees. In the U.S., each party pays its own fees. This means that as a general rule, the American Rule, even if you defeat an unjust claim against you, you are still stuck with all of your legal bills spent defending yourself. It also means that if someone has a just claim for $100,000 but has to pay a lawyer $40,000 to collect that sum, they will only net 60% of what they were owed.

What are boilerplate provisions?

Boilerplate provisions are typically found near the end of an agreement and can be very important. These provisions may determine who pays for attorney fees in commercial leases. They determine how disputes are resolved and how a court can enforce a contract. They may answer several important questions like: Does the lease contain all of the agreements of the parties? Where can a lawsuit be brought? Who has to be notified of a breach? Is there an opportunity to cure? And many more questions.

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, even if a given task actually took less time. For example, a lawyer who bills in six-minute increments will charge you for the full six minutes even though a particular phone call lasted only two.

Do lawyers charge for photocopying?

Lawyers may charge you for more than just the value of their services. Typically, lawyers charge clients for costs that are not included in the lawyer’s normal office overhead, such as travel, hiring experts, time spent on online legal research databases, or other consultants—and some even charge for photocopying! Be sure to find out whether you will be charged for itemized costs and, if so, what they are and how much you’ll pay.

Nancy L. Lanard

My firm handles commercial retail/shopping center leases of that type. We charge a flat fee for the review, revision and negotiation of the lease. If you contact me via telephone (215-525-1165 x101) I can provide the exact cost to you, with no hidden charges...

Stephen Samuel Messutta

It's not only the "review" but really the way to control costs is to help you identify particular areas of concern to you that you may want the attorney to negotiate harder on.

Erik Anderson

I agree with the attorneys above. Clients often confuse the size of the rental space with the cost of reviewing a lease. While your attorney may be able to spot issues relatively quickly, the negotiating position taken by the land lord may make the process for time consuming. This in turn results in a larger legal bill...

Brian C Shea

Both of the answers already posted by other attorneys describe good points to consider. Many clients think that a lease for a relatively small space shouldn't take very long to review and negotiate. Having reviewed hundreds of leases, I know that is often not the case.

K Shaylan Baldwin

I agree with the above response...it's just really tough to tell until you see the proposed lease from the landlord. Depending on the size of the shopping center, there can be some considerable negotiation on exclusions from Common Area Maintenance obligations, review of exclusives, etc.

Matthew Allan Quick

It would depend on the length of the lease and any needed clarifications.

Jay B. Shuster

Sit with client, review and clarify lease 1 hour. Negotiate, as long as it takes.

Thomas H Gimer

Commercial landlords aren't expecting tenants to agree to their leases. Best course of action is to retain an attorney and benefit from review and negotiation of terms most important to the business.

Brandy Ann Peeples

It depends what you are looking for -- a review with potential changes and negotiation? Or, are you looking just for the attorney to explain to you what the lease means? Some commercial transactions are very complicated; others more on the simple side.

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.

Is commercial lease the same as residential lease?

Many business owners are under the mistaken impression that commercial leases are similar to residential leases, and that each contract contains pretty much the same language. The fact is that commercial leases are far more complicated than those on the residential side, and they contain many potential pitfalls and financial risks for the tenant.

What is the agreement between landlord and tenant?

Before a commercial lease agreement is drafted, there is usually an agreement in principle between the landlord and the tenant. 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.

What is the most important contract to sign?

When you are starting a new business or moving to a new location, one of the most important contracts you will need to sign is a commercial lease agreement. Many business owners are under the mistaken impression that commercial leases are similar to residential leases, and that each contract contains pretty much the same language.

A Reminder to protect yourself on off market deals..

Just a reminder for commercial brokers who do off market deals. While I can say I have been very fortunate in this arena, I just got burned on an off market lease deal that I brought together for repositioning an off market shopping center.

Is Marcus & Millichap really that hard to work for?

I’ve received an offer from them to come on as an agent, and I’ve read all about how they do business. I’m tempted to take the offer because of the training they provide, as I’m fresh out of college and have no experience. However, it seems like their reputation in the industry may make it difficult to win listings.

How do real estate financial models vary by asset types?

Hello. I am curious about some of the nuances to consider by different property types. For instance, are there different considerations / metrics / valuation methods that you use for Industrial vs MF vs Office vs Retail.

I want to hear your thoughts on breaking new ground

I have a boutique hotel for sale. It's the first of it's sort- I've only done normal residential sales.

Curious how you all would finance your CRE investments as a first-time investor?

I'm curious how you all think a first-time investor would source debt financing, say for an acquisition. Ideas that come to mind are hitting up a local bank or credit union. Are there better ways? What are the challenges associated with financing a CRE deal?

Need help structuring an attractive and reasonable seller financing offet

So I am interested in this property (18 unit complex) , but I only have $166k left from my 1031.

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.

How long is a lease?

An average lease is 40 pages long. 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.

What to consider when hiring a lawyer?

If not, here are a few things to consider: 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.

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.

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.

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 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 is the right of first offer?

With a typical right of first offer, the landlord is generally required to present to you an offer to lease the subject premises before presenting such offer to others. Typically, you must decide, within some set period (e.g., a week), if you wish to accept the offer.

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 .

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.

Who is Alex Ramirez?

Alex Ramirez founded AR | LEGAL TEAM to help investors, family offices, and business owners with the acquisition, operation, and disposition of commercial real estate, and other business matters . Mr. Ramirez was born and raised in the Midwest. He graduated from the University of Illinois at Urbana-Champaign in 1996 and from Northwestern University School of Law in 1999. He has practiced real estate law with both international and boutique law firms and has provided counsel to local, regional, national and international clients with respect to the acquisition, development, financing, leasing, operation and sale of various property types, including single-tenant retail investments, multi-family portfolios, shopping centers, office space, as well as distribution and manufacturing facilities.

Boilerplate Provisions: What Are They?

• Many legal documents contain what is known in our profession as boilerplate provisions. Boilerplate provisions are typically found near the end of an agreement and can be very important. These provisions may determine who pays for attorney fees in commercial leases. They determine how disputes are resolved and how a court can enforce a contract. Th...

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