A commercial lease is a binding contract between a landlord (lessor) and a tenant (lessee) which gives the tenant exclusive right to occupation of a premises. The key word here is “binding”. Once the lease has been executed by both parties, your ability to renegotiate or get out of the lease is limited. This can prove to be really costly if you jump into a lease without getting the right advice.
Let’s take a look at a few of the key issues you wouldn’t want to overlook as a tenant.
A commercial lease will typically be for an initial term with an “option” for the tenant to receive an additional period once the initial term ends. This is known as an “option to renew”. Having options in the lease provides some comfort to a tenant. If it’s not happy at the end of the initial term, it can vacate the premises. Rather than exercise the option to stay for the additional term.
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