Those who are looking to lease commercial space in New York or anywhere else will likely need to sign a written agreement. Generally speaking, landlords are willing to negotiate the exact terms of that pact with their tenants. However, there are many words or phrases that appear that typically appear in a formal commercial lease. For instance, an escalation clause could give a landlord the right to increase the rent that a tenant pays.
The clause could be triggered if the landlord’s operating costs go up or there is a change in an economic index. Tenants are encouraged to learn ahead of time the specific reasons why their rent could go up in the future. If a lease has a purchase option in it, the tenant could have the ability to buy a commercial building or office space in the future.
Renewal options might also be made available for tenants who want to stay where they are after their current deals expire. If a tenant is looking for a retail space, a competition clause may be added to the lease. This spells out a landlord’s right to rent nearby stores or other commercial buildings to other companies in a tenant’s industry. Retail leases may also include a going dark clause, which could give tenants the right to opt out of the deal if nearby companies go out of business.
Those who are interested in renting commercial real estate may want to have an attorney review a lease before it is signed. This might ensure that an individual knows what he or she is signing and that the terms are reasonable for a prospective tenant. If necessary, a business owner may ask that changes be made to a lease agreement before it becomes binding on all parties.