Commercial Lease Agreements
Are you about to open your first brick and mortar location in Oregon? Before we make any important decision and sign any kind of contract, we want to make sure we understand what we are signing. These contracts typically last from 3 to 10 years and will be one of the biggest liabilities your business will have.
Commercial lease agreements are legally binding contracts between a landlord and a tenant's business. This agreement should cover the terms that will apply to the space you want to rent (office space, warehouse, food cart pod, etc)
Landlords in Oregon must include certain information in their agreements:
Who the tenant and landlord are and their information.
A good description of where the property is located and its physical address
When payment is due, how much and for how long
If there is a security deposit, the rules that apply to it
If this is a building ad utilities are shared, how those will be distributed
One of the most interesting aspects of this agreement is the issue with repairs and ongoing expenses for which the tenant, meaning you, will be responsible for. This is one of the biggest problems I see with this type of contract. Tenants are not expecting to pay for things like the HVAC system repair but due to contract provisions, they have to. It is very important to review a commercial lease before you sign. It is a little investment to make sure that for the next 3-10 years, your business will not be surprised by the Landlord’s rules.
Let’s make sure we negotiate the terms you don’t agree with. Perhaps we want to hire an inspector before signing to check the status of the location and its installations. Maybe you love the location but you don’t think the terms of the agreement are fair. This is when you involve someone like me to advise you on the best next step.
Lastly, this contract will be legally binding only if and when both parties have signed and dated the agreement.
If you want to have a conversation about signing a commercial lease, what things to look for or you want me to review your contract before signing, let’s schedule a free consultation to discuss your case.
