Your Commercial Real Estate Lawyer will draft and negotiate commercial lease agreements on your behalf that is customized to the requirements of the tenant and landlord for that particular transaction. Lease details and particulars are discussed with you whether it is for industrial, commercial or retail space.
If representing tenants, the Lawyer will make a detailed review of the draft commercial lease agreement of the landlord to ensure nothing untoward is included. Draft comments will be made and discussed with you to understand the priorities and take appropriate actions accordingly. Revisions to the lease are done based on this information.
If representing landlords, the Lawyer understands the lease intentions from a landlord and drafts the suitable and customized commercial lease agreement. They coordinate with tenants’ solicitors to make appropriate negotiations and make sure a mutually agreeable document gets drafted and finalized.
The Commercial Leasing Process
In the commercial leasing process, the landlord and the tenant enter into an offer to lease or letter of intent to lease. It includes the summary of the terms and conditions of the main lease which may be a gross or net lease. Many terms are noted here including the length of the term, conditions for extension or termination, right to transfer and much more. The offer to lease once accepted is to be used when drafting the long lease, as terms agreed in the offer to lease are binding in principal.
The offer to lease can include the provision where the tenant may agree to enter into the landlord’s standard lease. This is more favorable for the landlord and not so for the tenant as it can have financial implications for the tenant.
Standard leases are drafted in the format to protect the landlord’ legal rights. From a tenant’s perspective, it is advisable to enter into a formal lease which is acceptable to both landlord and the tenant.
A lease agreement is implied to be in force if the parties conduct themselves as if the lease is in force, even though it may not have been signed formally.
Gross Lease vs Net Lease
In a gross lease, the landlord has the responsibility for paying all costs of the property like insurance, repairs, maintenance and other taxes. The tenant pays a single fixed rental amount which is calculated by the landlord after factoring in the anticipated property costs. In a net lease, tenant pays a fixed tenancy cost plus all additional property costs.
Franchisor and Franchisee Leases
Franchise locations leases are also negotiated and completed by the Commercial Real Estate Lawyer. These leases differ from the commercial leases as they include the right to sublet the premises to the franchisee to occupy as a tenant. Head lease and sublease are negotiated separately, and both landlord and tenant priorities are taken care of at the time of negotiations.
Other Unconventional Leases
There are many unconventional leases which are beyond the scope of the typical commercial leases. These include solar roof-top leases, ground and building leases which come with their own set of considerations.
Ground leases can be used for developed or vacant properties. In this, the tenant has more obligations as compared to other kinds of leases.
Building leases allow greater responsibility and control to the tenant as compared to the simple commercial leases as they have the structure located on the property itself.
Solar rooftop leases
Solar rooftop leasing is another category which is gaining prominence in Ontario. It has its origins in the newly introduced Ontario’s Green Energy Act. In this type of leasing, companies got rights to install solar panels on commercial rooftops.
They come with a time duration in which the property owner gets the title of the solar installation. You will need to address the specific and unique concerns of maintenance, control and access with solar rooftop leases.
Engaging experienced commercial real estate lawyers well versed in such type of leases will be a great help in securing your contracts in this field.
How We Can Help
At Nanda & Associate Lawyers, our experienced Real Estate lawyers understand your specific circumstances and provide tailored and customized solutions for each of them.
Our Mississauga Real Estate Lawyers are available for a consultation. Come and experience our quality legal counsel and personalized care we give to each client. We ensure prompt communication and a professional approach to achieve successful outcomes for you.
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