Standard commercial lease…really? I met with a prospective client this morning and handed them a agency agreement. I was tempted to say it was a standard agency agreement because it was from the North Texas Commercial Association of Realtors. Then I stopped because I hate it when somebody claims a document is a standard document.
There are no standard documents and the same applies to commercial leases, There is not a standard commercial lease. Yes there are similarities but the documents are rarely the same.
The Standard Commercial Lease Points
- Lease Commencement Date
- Square Footage
- Lease rate
- Suite number
- Lease Term or length
- Tenant Name
- Landlord Name
- Security Deposit
Standard Commercial LeaseI think everything else is different in almost every lease document. Most landlord’s hire their own attorney to draft the lease for their desired needs. The tenant must have the knowledge and skills to know what has been left out of the document to protect the landlord. The tenant also must have the necessary skills to modify the lease document to protect their own interests.
I am a commercial real estate broker. I cannot give legal advice regarding lease documents. However, I do know that part of getting my clients the best deals is to have a well negotiated lease. When a lease is completed and delivered to the tenant the lease usually will need to have revisions made to it. The landlord’s agent will proclaim it to be a standard commercial lease but in fact it is a lease that is drafted by the landlord’s attorney for the protection of the landlord.
Please don’t make the mistake of accepting the lease and executing it until it has been properly reviewed by your attorney. As a licensed broker I cannot give the client legal advice. However I can work closely with the client’s attorney to modify the lease. On many occasions I have given the attorney valuable feedback and information help my client.
After all, thirty years in the business and hundreds of leases later I would assume I learned a few things. What I do know is there are no standard commercial lease negotiations. Every lease is different.