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Commercial lease agreements: Important clauses

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Commercial lease agreements: Important clauses

Last updated: September 3 2019
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  • Commercial lease agreements: Important clauses

    What important clauses should tenants add in commercial lease agreements?
  • #2

    #2

    Re : Commercial lease agreements: Important clauses

    Usually there is a huge outgo in commercial establishments and hence a lot of things should be checked before signing the agreement. The rental agreement is usually drafted by the landlord and hence it always in his favour. The tenant should check for specific clauses and if possible negotiate putting his own to be able to run business smoothly as those clauses can impact business activities in a huge manner.
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    • #3

      #3

      Re : Commercial lease agreements: Important clauses

      The issue in agreements, especially commercial agreements is that landlords practically dictate agreements and even if they don't, agreements have been structured by default to suit and benefit the owner of the property. Hence it is important to work out a mutually beneficial agreement before taking a commercial property on lease.

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      • #4

        #4

        Re : Commercial lease agreements: Important clauses

        Can tenants actually dictate terms in a commercial lease agreement at all? I would like to believe that they can as they bear the financial obligation towards the property and then of running their businesses.

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        • #5

          #5

          Re : Commercial lease agreements: Important clauses

          Your concern is correct but even if the commercial lease agreement is being prepared by a owner friendly broker, there are some specific clauses and pre-conditions that tenants should check for and if needed, make amendments or additions.
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          • #6

            #6

            Re : Commercial lease agreements: Important clauses

            Thanks. What kind of clauses do you mean?

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            • #7

              #7

              Re : Commercial lease agreements: Important clauses

              Well, to begin with a tenant can ask for concessions in rent, like waiver of the rent for the first one or two months of the lease duration of the commercial property. Usually, landlords are pliable, if the property had been unoccupied for long.
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              • #8

                #8

                Re : Commercial lease agreements: Important clauses

                Malvish oh, you mean the regular bargaining that happens in such transactions

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                • #9

                  #9

                  Re : Commercial lease agreements: Important clauses

                  getintoit yes, the regular bargaining but with a little persistence and conviction.
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                  • #10

                    #10

                    Re : Commercial lease agreements: Important clauses

                    Malvish I wonder what "little persistence and conviction" means though

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