One Sided Commercial Lease Agreement

A one-sided commercial lease agreement is essentially an agreement that heavily favors the landlord or property owner. This type of lease agreement can put tenants at a disadvantage, especially if they are not aware of their rights or the terms of the lease. As a tenant, it is important to review the lease carefully and ensure that you understand all the clauses and terms before signing on the dotted line.

Here are some things to look out for in a one-sided commercial lease agreement:

1. Excessive rent increases: Some one-sided commercial lease agreements may include clauses that allow landlords to increase rents by an exorbitant amount. This can be a major financial burden for tenants, so it is important to negotiate and cap rent increases in the lease agreement.

2. Limited tenant improvements: Tenant improvements are any changes made to the interior or exterior of the property. Some landlords may limit the amount of tenant improvements that can be made, which can restrict the tenant’s ability to customize the space to their needs. Negotiating for more flexibility in this area can be important for the success of a business.

3. Limited use of the property: Some one-sided lease agreements may restrict the type of business that can operate on the property. This can be a major hindrance to a tenant looking to expand their business or pivot to a new direction. It is important to clarify any restrictions in the lease agreement before signing.

4. Lengthy lease terms: One-sided commercial lease agreements may also include lengthy lease terms that can be difficult to break if the tenant needs to change locations or close their business. Negotiating for shorter terms or flexible options can give the tenant more options and lessen the risk of financial burden.

5. Unreasonable fees: Some landlords may include fees for services that they should be responsible for, such as maintenance or repairs. It is important to carefully review any fees listed in the lease agreement and negotiate for terms that are fair and reasonable.

In summary, a one-sided commercial lease agreement can be a disadvantageous situation for tenants. It is important to review the lease carefully, negotiate for fair terms, and seek legal counsel if necessary. Understanding and asserting your rights as a tenant can help protect your business from financial burden and set you up for success.