Lease Commercial Real Estate

A lease agreement is a legal and binding contract between the parties involved, where the lessee (landlord) is free to use the property as he/she wishes without having to compensate the tenant. Normally this happens when a tenant fails to pay rent on time or is in default of any other terms and conditions of the lease agreement. There are many advantages of leasing over renting commercial real estate properties. For starters, there is a lesser chance of getting into trouble with the tenant as no one is forced to stay on the property beyond the term of the lease agreement. Also, due to the tenant not being obligated to stay, most of the expenses related to maintaining a business in a leased space are borne by the landlord.

A lease agreement has various sections where all the terms and conditions are laid down clearly. In order to make the lease legal, it is signed by both the parties. It is advisable to have a lawyer look over the lease agreement before signing it. The lease agreement may contain various clauses such as the amount of rent, when it is to be paid, penalties for late payment etc. It is better to clarify all the doubts that the buyer or the lessee has regarding the property before signing the lease document.

A lease gives both the parties a certain period of time to settle their disputes in case of any dispute. Usually a written agreement is used but verbal agreements can also be used. The landlord should clearly state the terms and conditions of the lease so that there is no misunderstanding between both the parties. It is better to go through the entire document very carefully and then sign it to signify your full understanding of all the terms and conditions. You should only sign a lease if you are satisfied with it.

Once you have signed the lease, the property will automatically become the property of the landlord. During this time the lessee must follow all the rules imposed on him by the landlord. He cannot sell the property till the lease period is over otherwise he will lose all the money that he has put as down payment.

Any damage to the property caused by the tenant can also be claimed by the landlord. So if you want to buy a property that has been leased, it is better to check out for any issues beforehand. Also make sure that you do not breach any of the terms and conditions stated in the lease agreement. Commercial real estate dealings involve a lot of money and hence it is best to be careful in every deal.

When you are looking to buy a commercial real estate property that has been leased, the main aim is to get the best deal and this can only be achieved if you have a good negotiation skills. The first step in this direction is to find a good real estate agent who has years of experience negotiating leases. The agent will represent your interests and help you get the best lease commercial real estate NYC deal that suits both of you.

Lease negotiations are different from normal residential transactions because the landlord has to offer a lower rent as compared to the market value. It is always better to negotiate than to leave the lease without getting something in return. Always remember to mention all the expenses in the lease document. This will help you to show the landlord that you have paid an appropriate amount and that you have also included the expenses that were required during the lease period.

Before you sign the lease agreement, read thoroughly all the terms and conditions mentioned in it so that there are no surprises later on. Commercial real estate deals are often complex and the lease agreement is a legal document. It is therefore advisable to seek help from a professional lawyer or real estate attorney. They will definitely be able to help you in negotiating the best lease deal.