Commercial Leasing: Negotiating
The importance of negotiating favorable terms in a commercial lease cannot be overstated, especially in today’s business climate. Just as important is that commercial landlords and their tenants have a clear understanding of the terms of the lease that will bind them in the coming years. The stakes are high in the commercial context, and misunderstandings regarding seemingly innocuous details such as the parties’ respective obligations over common area maintenance expenses, compliance with local, state and federal ordinances and laws, the rights of a tenant regarding assignments and sub-leasing and the rights and obligations of a landlord with respect to other tenants in the center can have a powerful impact on the future of any business’ bottom line. At KISHNER & MILLER we focus on our client’s business goals when drafting, reviewing and negotiating commercial lease terms.
In addition, many businesses today are faced with potential failure and are looking for creative ways of staying in business – creative ways that may conflict with lease terms agreed to some ten or even twenty years ago. Some tenants simply cannot afford to keep up with their lease payments, and hope that their landlord might absorb some of the losses. Others collapse and look to bankruptcy. Whatever the circumstances, the first best protection for commercial landlords and their tenants in avoiding potential conflicts in the future is to have clearly defined and clearly understood lease terms. A well-crafted commercial lease is critical to successful planning and operation of any business whether it be a sprawling commercial development or the owner of a small business leasing space in a small strip mall.
Commercial leases are complex legal contracts that are often entered into on impulse. Entrepreneurs are excited about new business ventures and become overwhelmed by the large number of economic decisions that have to be made in a short period of time. Startup costs can rapidly get out of control forcing the young entrepreneur to cut corners. One seemingly simple way to cut corners is to reduce legal fees. They convince themselves that commercial leases are relatively common contracts that don’t require significant review. While some sophisticated business owners with experience negotiating commercial leases are capable enough, most business people should consider hiring an attorney to assist them with negotiation. Commercial leases are not simple contracts and the rights and obligations of the landlords and tenants will have a long term effects.
At KISHNER & MILLER, we work closely with our clients to ensure that their business goals are met. We understand that all of our clients are first and foremost concerned with their “bottom line”, and we recognize that the “bottom line” is impacted by legal costs and fees. We are committed to providing our clients efficient and cost effective legal representation without sacrificing quality and personal service. Obtaining results in an efficient and cost effective manner is our first priority. Client satisfaction and long term associations are more important to us than short term gains.