Commercial Lease Review and Negotiation
Is there a "Standard" Commercial Lease in Texas?
There is no "standard" commercial lease in Texas, period. There are as many commercial leases in the marketplace as there are landlords and their attorneys. And many landlords use different leases for different projects. Commercial leases differ in content depending on whether the tenant leases the entire project or building; whether the project is shopping mall, or a strip shopping center; whether the project is a small office building with multiple tenants, or a multi-story office building with perhaps hundreds of tenants.
What are common concerns related to Commercial Lease in Texas?
Although there are no standard lease forms, the composition of leases are generally similar. But each landlord or landlordís attorney will be very protective of many provisions within their lease (that is, few if any changes are permitted), but there are other portions of their lease where they will entertain negotiated changes that are reasonable, perhaps because of competitive pressure in the marketplace. It is in this arena that an attorney with a background in commercial lease review and negotiation will provide the prospective tenant with valuable information and insight into which lease covenants may be negotiable, and which are more than likely off limits.
Should I sign a "Letter of Intent" in Texas?
Many landlords and leasing agents pursue the prospective tenant and request the execution of a "letter of intent." Avoid signing a letter of intent with the landlord until after you have received legal counsel. Landlords are very often reluctant to revisit the agreed deal points set forth in these summary documents. For instance, a letter of intent in a commercial lease transaction may include these deal point issues: identification of the landlord and the tenant, description of the premises, location of the premises, identification of any guarantors, permitted uses of the premises, delivery date of the premises, lease commencement date, rent commencement date, lease term, base rental, whether or not percentage rent applies, charges to the tenant in addition to the base rent, amount of the security deposit, prepaid rent, construction undertaken by the landlord, construction undertaken by the tenant, improvement allowance for the tenant, signage, and any contingencies that may affect the transaction.
I assist clients in the review and negotiation of commercial leases.