What is a standard commercial lease agreement?

What is a standard commercial lease agreement?

A commercial lease is a legally binding contract made between a landlord and a business tenant. The lease gives a tenant the right to use certain property for a business or commercial activity for a period of time in exchange for money paid to the landlord.

Are commercial lease rates negotiable?

In theory, all terms of a lease are negotiable. But your negotiating power depends on whether your local rental market is hot or cold. If plenty of commercial space is available, you can probably win many landlord concessions.

How do you read commercial lease rates?

Typically, with commercial properties, lease rates are based on the annual cost, per square foot, of the leased space. Thus, to determine the monthly rent for a property, one would need to multiply the quoted rent per square foot by the number of square feet being leased.

What is the longest commercial lease?

A ground lease involves leasing land for a long-term period—typically for 50 to 99 years—to a tenant who constructs a building on the property. A 99-year lease is generally the longest possible lease term for a piece of real estate property. It used to be the longest possible under common law.

Can I sell my commercial lease?

As soon as you plan to sell your business, you should notify the landlord right away. The seller will not be able to establish a commercial lease assignment with a buyer unless the landlord approves it. So, if you were to wait a few days before your business is sold to tell your landlord, they may not approve the sale.

What is a major downside for a business to own its own building?

What is a major downside for a business to own its own building? Maintenance and repair activities could cause the business to lose its business focus. Product liability is greater. Maintenance and repair activities could cause the business to lose its business focus.

Is a 999 year lease good?

A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below). If a lease has less than 80 years left to run, it may make the property hard to sell, and it may even be difficult to remortgage.