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Tips may help with negotiating commercial leases correctly

A lease governs a tenant's and landlord's entire rental relationship. This includes what both sides' duties are, the rent amount and what should happen if either side fails to comply with the terms of the lease. For this reason, understanding how leases work, especially commercial leases, is critical for aspiring tenants in Los Angeles.

Business owners who operate retail establishments and are looking for commercial leases may benefit from insisting upon a type of provision that will prevent their landlords from renting any space near them to their competitors. They may also want to spell out any and all conditions under which they can break free from their leases, as well as what the notice requirements are. Furthermore, if a dispute arises, how will it end up being resolved? Detailing this in a commercial lease can be advantageous as well.

Another important consideration when pursuing a commercial lease is ensuring that the lease agreement features spatial specifications. In other words, it may be helpful to have the lease spell out the amount of space being rented as well as what areas are included. After all, landlords' measurements tend to be exaggerated. If would-be tenants end up finding discrepancies in the reported and the actual space amounts, this may be an invaluable bargaining tool.

Negotiating a commercial lease is just another part of doing business, but that does not mean a business owner has to go about the process alone. A qualified real estate attorney in Los Angeles with knowledge of commercial leases can help the business owner to negotiate his or her lease effectively. The attorney's goal is to ensure that the business owner's rights are protected and promoted before he or he signs on the dotted line.

Source:, "Commercial Lease Negotiation Checklist", Accessed on Feb. 6, 2018

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