There’s almost always room for negotiation before signing a commercial lease agreement. Whether you are the property owner or the lessee, our attorneys can protect your interests and include clauses that favor you in a commercial lease agreement.
Sending a letter of intent gets the ball rolling for commercial lease negotiations. Do not sign the first version of a commercial lease without letting our lawyers read it and identify clauses to add for your benefit or protection. Nearly all terms in a commercial lease are negotiable in Maryland, from the monthly rent to the leasing period.
Get your free case review from our Baltimore, MD commercial lease disputes lawyers when you call the Heyman Law Firm at (410) 305-9287.
How Do You Negotiate a Commercial Lease Agreement in Maryland?
Negotiating a commercial lease agreement requires experience in these settings, a thorough understanding of “comps” in the area, and insight into the lease clauses that may benefit you in the long run.
Market Research
Whether you own a commercial space and are leasing it to a business tenant, or you have a business and need a storefront or office space, we can help with market research to determine comparable rental rates in the area. This helps owners set rental rates and terms, and helps lessees determine whether a specific rent is too high for the area and square footage.
Letter of Intent
The letter of intent is a non-binding, informal agreement that outlines the base rent, the type of lease (single net, double net, or triple net), the lease term, property use provisions, and, sometimes, set rent increases at specific times.
The letter of intent helps set the stage for negotiations and, while not a binding offer, is essentially a preliminary proposal outlining the basic terms of the commercial lease. Either party can send a letter of intent.
Lease Review & Negotiation
If you own the commercial property in question, our Maryland commercial lease disputes lawyers can help you draft the commercial lease. Our attorneys also help business owners who need to lease commercial space by reviewing leasing agreements and identifying potential areas for improvement.
For example, if the commercial lease is written as a triple net lease, the tenant would be responsible for all financial costs, including structural repairs, property taxes, and insurance. A single net lease, the tenant pays the base rent and some property taxes.
We can negotiate to include clauses that benefit you, the property owner or lessee, in a commercial lease, such as subleasing flexibility, non-compete agreements, or month-to-month rental terms.
How Much Can You Negotiate a Commercial Lease in Maryland?
There’s often plenty of room for negotiation when it comes to commercial leases, and our lawyers can introduce clauses that benefit you in the long-run.
Rent is typically negotiable, and the landlord may agree to reduce it if you accept longer lease terms. You can negotiate nearly every aspect of a commercial lease and tailor it to your specific situation with the other party’s agreement.
Don’t assume that the first draft of the commercial lease you receive is set in stone, as the property owner will most likely be open to some negotiation, especially if the unit has been vacant for some time.
FAQs About Negotiating a Commercial Lease Agreement in Maryland
Do You Need a Lawyer to Negotiate a Commercial Lease Agreement?
You should have a lawyer negotiate your commercial lease agreement before you sign it, to ensure it includes terms that favor you and to make sure you are getting a good deal. If this is your first time leasing a commercial space, you may not know there is room for negotiation or that there are clauses to include to protect yourself.
How Long Does it Take to Negotiate a Commercial Lease Agreement?
Don’t rush negotiating a commercial lease agreement or sign anything until you are fully confident in the lease and what it requires of you as a commercial tenant. It may take time for our lawyers to negotiate a lower rent or better terms with the property owner; that time may be worth it in the long-run because you end up with a better deal.
What is an Exclusivity Clause in a Commercial Lease in Maryland?
Including an exclusivity clause in a commercial lease contract prevents the property owner from renting nearby units to any of your direct competitors, and our lawyers can fight for this clause on your behalf.
Who Pays Utilities in a Commercial Lease Agreement in Maryland?
Tenants generally pay utilities under a commercial lease, unless it is a gross net lease, which is less common in commercial rentals.
Who Pays Property Taxes and Insurance Under a Commercial Lease Agreement?
In a single net lease, the tenant covers property taxes, and the landlord covers insurance. In a double net lease, the tenant covers property taxes and insurance, and the landlord covers most maintenance. In a triple net lease, the tenant covers all costs, including insurance, rent, utilities, property taxes, and repairs.
What if You Change Your Mind About a Commercial Lease Agreement?
Commercial lease agreements are binding once signed. Breaking a commercial lease can be expensive, and you will most likely lose your security deposit unless the landlord first violates the lease. We can help plan your exit strategy so you can leave the deal as seamlessly as possible.
How Do You Handle Commercial Lease Disputes in Maryland?
For all commercial lease disputes in Maryland, let our real estate transaction lawyers help find the best possible resolution. Many real estate disputes are settled without trials, though some are litigated in court.
Get Help from Our Real Estate Litigation Lawyers in Maryland
Get your free case evaluation from our Maryland commercial lease disputes lawyers by calling the Heyman Law Firm at (410) 305-9287.