As a business owner or property manager, signing a commercial lease is a crucial decision that can impact your business for years to come. Commercial leases are typically landlord-oriented, filled with legal jargon, and involve significant financial commitments. The risks of signing a lease without fully understanding the terms can be detrimental to your business, leading to unforeseen expenses, unfavorable conditions, and potential legal disputes.

This is why hiring an experienced real estate attorney is not just a recommendation—it’s a smart business move. Let’s explore the top five reasons you should hire a lawyer for your commercial lease, and how doing so can protect your business, secure better terms, and help you avoid costly mistakes.

 1. Protect Your Business Interests

 One of the most important reasons to hire a lawyer for your commercial lease is to ensure that your business interests are fully protected. Commercial leases are often drafted by landlords or their attorneys, which means they are typically skewed in favor of the landlord. Further, “off-the-shelf” lease forms are typically prepared with a “one size fits all” approach, and do not take into consideration the specific needs of your business. 

Commercial real estate lawyers have a specialized knowledge of the key terms of a lease agreement, and can help you identify unfavorable terms that could harm your business in the long run.  For example, tenants often need the ability to assign or sublet the lease if their businesses changes, or if they need to move or expand.  Leasing lawyers will look out for clauses that may limit such rights and negotiate exceptions for permitted transfers so that the tenant maintains flexibility over the future operation of its business. 

Real estate attorneys can also protect their client’s business from competition from other tenants.  Exclusive use clauses protect retail tenants from competing businesses in the same building, mall or shopping center, and co-tenancy requirements protect tenants if certain major anchor tenants leave the property making it a less desirable location.  Experienced attorneys will advocate for these protections in the lease agreement.

Having a lawyer by your side that understands the unique needs of your business guarantees that your rights are protected, and your business is not vulnerable to legal loopholes.

2. Navigate Complex Legal Jargon

Commercial leases are filled with technical language, legal jargon, and clauses that can be difficult to understand if you’re not familiar with real estate law. Terms such as “force majeure,” “indemnity,” and “holdover” might sound confusing, but they carry significant legal implications. Without a full understanding of these terms, you could be agreeing to unfavorable conditions that could come back to haunt you.

An experienced real estate attorney can break down the lease agreement into plain language and help you fully understand what each term and clause means.  Moreover, an attorney can protect you from agreeing to non-market terms. For example, landlord’s often insert very broad indemnification clauses into leases which unfairly shift the risk of liability from landlord to tenant.  A leasing attorney knows the importance of ensuring indemnity clauses are clear and specific to avoid ambiguity if issues arise during the lease term. 

 3. Identify and Avoid Hidden Costs

Commercial leases often contain hidden costs that can catch business owners by surprise. These costs can include property taxes, insurance, repair and maintenance costs, and common area expenses that are not clearly outlined in the lease. These hidden expenses can significantly increase the overall cost of the lease, straining your business’s budget.

Common area costs (or “operating expenses”) are one of the most heavily negotiated provisions of any lease agreement. A lawyer will comb through the lease to identify any potential hidden pass-through costs that you may not have noticed. A lawyer can help you negotiate caps on certain expenses ensuring that they don’t increase beyond a reasonable percentage each year, and make sure that the lease contains exclusions for certain extraordinary expenses.  By having a lawyer identify these potential costs upfront, you can better plan your budget and avoid financial pitfalls.

 4. Secure Favorable Lease Terms

 Negotiating favorable terms is another significant advantage of hiring a lawyer for your commercial lease. Many business owners, especially those who are new to leasing commercial property, may not realize that many aspects of a lease are negotiable. This includes rent increases, renewal options, maintenance responsibilities, and even termination clauses.

 A skilled real estate attorney knows what terms can and should be negotiated to protect your business and secure better conditions for you. They can negotiate for more flexible renewal terms, tenant improvement allowances, and rights to expand.  Their goal is to ensure that the lease agreement aligns with your business needs and minimizes your exposure to risk.

 For instance, if you anticipate needing more space in the future, a lawyer can negotiate a clause that allows for expansion without significant penalties. Alternatively, if you want to avoid steep rent increases, they can work to secure a rent escalation clause that ties increases to a fixed percentage rather than market rates.

 A lawyer’s negotiation skills can make a significant difference in the terms of your lease, ensuring that you get the best possible deal.

 5. Resolve Future Disputes

Even with a well-drafted lease, disputes between landlords and tenants can still arise. Whether it’s a disagreement over property repairs, rent increases, or lease renewal terms, these disputes can escalate and result in costly legal battles if not handled properly.

One of the best ways to protect against disputes is for your lawyer to negotiate for a clear exist strategy, including rights to assign or sublet your lease, and early termination rights. 

 Additionally, many commercial leases include dispute resolution clauses that outline how conflicts will be handled, such as through arbitration or mediation. A lawyer will ensure that these clauses are fair and that you’re not at a disadvantage if a dispute arises. Their goal is to resolve the matter as quickly as possible while minimizing the impact on your business.

 Conclusion: Protect Your Business by Hiring a Lawyer

A commercial lease is more than just a document—it’s a legal agreement that can have long-lasting effects on your business. By hiring an experienced real estate attorney, you’re taking a proactive step to protect your business, secure favorable terms, and avoid costly mistakes.

 From protecting your interests to navigating legal jargon, avoiding hidden costs, securing better terms, and resolving disputes, a lawyer plays a critical role in ensuring your lease works for you, not against you.

Don’t take risks with your business’s future. Contact our expert real estate attorney, Brigid Brookman, for a consultation today. You can reach her directly at Brigid@ajplawgroup.com  or through our contact form at https://www.ajplawgroup.com/contact . Let Brigid help you make informed decisions that will benefit your business for years to come.