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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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  • #21

    #21

    Re : Commercial lease agreements: Important clauses

    Originally posted by mmalhot View Post
    Malvish okay, you meant if the same person owns another unit/s in the premises. Is that allowed? I mean, will the owner of the property agree to such clause easily?
    Yes.
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    • #22

      #22

      Re : Commercial lease agreements: Important clauses

      Another helpful clause in a commercial lease is the leasehold improvement clause which allows the tenant to carry out renovations or make necessary improvements to the premises, for running the business smoothly and more efficiently.
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      • #23

        #23

        Re : Commercial lease agreements: Important clauses

        The lease improvement clause is a must I believe, as in many cases landlords don't agree to renovations and structural additions or changes as the lease progresses.

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        • #24

          #24

          Re : Commercial lease agreements: Important clauses

          A lease renewal clause should also be added in the commercial lease agreement clearly pointing out the percentage of hike in the rent as the lease progresses year after year.
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          • #25

            #25

            Re : Commercial lease agreements: Important clauses

            How much hike can be expected and negotiated in a commercial lease agreement?

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            • #26

              #26

              Re : Commercial lease agreements: Important clauses

              In commercial real estate, as a thumb rule, a 10 per cent annual hike in rental, is considered optimal. The hike can be lower or higher, depending on the situation of other commercial spaces in the locality and immediate vicinity. It is important to get it all in writing at the time of the agreement.
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              • #27

                #27

                Re : Commercial lease agreements: Important clauses

                The lease termination clause should be checked well in advance for the conditions that can allow the landlord to terminate the lease as most of the times they can be very rigid and one sided.
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                • #28

                  #28

                  Re : Commercial lease agreements: Important clauses

                  Malvish you are right. Landlords are very adamant about lease termination and they come up with many ridiculous reasons at times.

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                  • #29

                    #29

                    Re : Commercial lease agreements: Important clauses

                    Yes, sometimes they are. Also, one more thing to be checked in a commercial lease agreement is clauses about a situation when the rented property or the entire premises suddenly gets sold with the lease still in continuation.
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                    • #30

                      #30

                      Re : Commercial lease agreements: Important clauses

                      Malvish Good point! I was going to ask about that. What happens to the tenant in a commercial lease when the property gets sold with the lease still having many months to expire?
                      Last edited August 27 2019, 12:08 PM.

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