The Role of a Real Estate Lawyer in BC Commercial Leases
If you run a business and operate out of a leased property, the rent you pay can form a major chunk of your monthly business expenses. A business lease can last for years and there are several issues that could arise if the lease does not have the terms to properly address your concerns as a business owner.
It is common for entrepreneurs to sign commercial lease documents without reviewing them properly. Some of them are also unaware of the fact that the terms of the commercial leases can be negotiated.
This is why real estate lawyers are important for negotiating the terms of a commercial lease. In this blog, we look at some of the ways in which a business lawyer can help you with your lease.
If you are an entrepreneur looking for the right commercial property to lease in British Columbia, ensure that you are accompanied by a trusted real estate lawyer in your journey.
Here are the most important ways in which a real estate lawyer assists you in negotiating commercial leases:
Evaluating Your Business Needs
Commercial leases are complex and having legal assistance will always help you get things done in a hassle-free way. Your lawyer will help you negotiate your lease based on your business needs. They will work with you on matters related to future space needs, budgets, preferred locations, etc. This is also why it is important to work with the best local real estate lawyers. For instance, if you are looking for a commercial property lease in Surrey, look for professional Surrey estate lawyers to help you out in your quest.
Understanding Your Costs
When it comes to managing costs and budgets, a business is no different than an individual. A lease should always mention future base rent increases and incidentals. Your lawyer will check the same and match it with the cost your business is likely to incur. They will advise you to go ahead with the lease only if your costs are manageable.
Addressing The Right Concerns
A trusted real estate lawyer in British Columbia will ensure that your commercial lease addresses relevant concerns and protects your interests as a tenant. Such matters are often related to the term of the commercial lease, land use issues, and potential business disruptions in the case of specific issues.
Understanding Different Leasing Options
Not all business owners are aware of the leasing options available to them. Their lawyers help them understand these options, prompting them to make informed decisions.
Have a look at the three types of commercial leases you can choose from:
- Gross Rent Lease
In this lease, you pay a single rent to your landlord that includes your base rent along with all incidentals. If you wish to share a few incidentals with your landlord, you can opt for a modified gross lease.
- Net Lease
This is the lease where you directly pay incidentals to your landlord. Such an arrangement often results in a lower rent. In a conventional net lease, you will be paying your landlord the base rent along with utilities, insurance, or property taxes. If you opt for a double net lease, you pay your base rent along with property tax and insurance. Finally, a triple net lease requires you to pay the base rent, property tax, utilities, building insurance, and other necessary operating/maintenance costs.
- Percentage Rent Lease
As the name suggests, such a commercial lease requires you to pay your base rent along with a percentage of your gross sales over a specific minimum amount. Such leases are common in properties like malls and multi-tenant retail areas.
Analyzing Market Rents
Businessmen are likely to be unaware of the market rents in the area if they want to get their properties on a lease. A real estate lawyer will help you analyze the market rents in the concerned area and match them with what your landlord asks for in the lease. This information often proves critical for negotiating a commercial lease.
- Asking For Inducements
It is common practice to ask a landlord for tenant inducements to persuade the concerned business to rent their commercial property. Landlords often provide incentives like a few months of free rent, free renovations, and more. If you are not aware of such inducements, your real estate lawyer in British Columbia will keep you informed.
- Reviewing Termination Conditions
Your lawyer will also help you review the conditions mentioned in the lease under which either you or your landlord can terminate the contract. What if the building you lease is sold? Can your landlord ask you to vacate out of nowhere? A real estate lawyer will scrutinize every termination condition to ensure that your business runs smoothly on the concerned commercial property.
- Adding A Competitor Clause
If needed, you can ask your landlord to add a competitor clause in the lease with the help of your real estate lawyer. This clause requires your landlord to seek your permission before renting a space in the same building to your competitor(s). You should be mindful of this clause if you work in the retail sector.
Negotiate Your Commercial Lease Seamlessly With Experienced Real Estate Lawyers Of Cube Law
If you are planning to get a commercial property on a lease in British Columbia, Cube Law’s real estate lawyers will help you negotiate the lease and get the best possible deal. Years of industry experience have given our legal professionals sufficient domain knowledge and skills to negotiate fruitful deals. With Cube Law, you can conduct all your commercial property transactions and complete legal formalities without missing out on a single beat.