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Commercial leases feature certain important terms

| Aug 24, 2017 | Commercial Leases

Like other types of contracts, a commercial lease between oneself and a landlord may be negotiated. However, effective negotiation in Los Angeles starts with an understanding of the terms often included in commercial leases. These terms include destruction, enforcement and escalation clause.

An important clause to search for in a commercial lease is one that deals with destruction. This clause essentially makes it mandatory for a landlord to rebuild the property being leased if this property ends up being destroyed. The clause explains whether the tenant’s rate will end up being abated and if tenant has the option of terminating the lease in the event the building is either partially or totally destroyed.

Yet another aspect of a commercial lease to consider is enforcement. An enforcement clause specifies how the contract will be enforced. In addition, many businesses will negotiate into their leases a clause that requires all parties to resolve disputes that arise via arbitration or mediation.

Another important term to consider when dealing with leases is the escalation clause. This clause provides for rent increases during a specific amount of time. Tenants may benefit from ascertaining how exactly these increases are determined; for instance, they may be tied to a landlord’s operating costs or to an outside index.

Various types of commercial leases are available to those who need office or retail spaces as well as those who need space for manufacturing or other industrial uses. All of these types of leases can be challenging to work whether one is a potential tenant or a landlord. However, an attorney in Los Angeles can help with negotiating and drafting as well as reviewing these essential documents.

Source:, “Commercial Lease Provisons“, Accessed on Aug. 23, 2017