Pikesville Commercial Landlord/Tenant Lawyers

Attorneys for Commercial Leases and Disputes Between Landlords and Tenants in Pikesville, MD

Commercial leases are contracts that control the relationships between landlords and tenants. If a tenant does not closely review the terms of a lease before signing, it may be locked into unfavorable rent escalations, be responsible for repairs, or be unable to terminate the lease if their circumstances change. A landlord who fails to address key provisions may face problems related to unpaid rent, subleasing without permission, or damage to the premises.

At Fox & Moghul, our lawyers work with landlords and tenants to negotiate favorable terms in commercial leases. We can identify provisions that could create problems down the road, and we can work with clients to resolve disputes that may arise during a lease. For small business owners who are looking for a new location, commercial property owners managing multiple tenants, or others who need to address concerns related to commercial leases, our team can provide effective legal guidance and representation.

Negotiating a Commercial Lease: Key Terms and Issues

When establishing a commercial lease, it is important for a person or business to fully understand the terms. Some of the most important issues to address during commercial lease negotiations include:

Rent Structure and Escalation

The base rent established in a commercial lease may be appropriate at the time the lease is signed, but circumstances may change in the future. Landlords and tenants will need to agree on how rent will change over time and what costs the tenant will be responsible for paying beyond the base amount.

In a gross lease, the tenant will pay a flat amount, and the landlord will cover operating expenses such as taxes, insurance, and maintenance. In a net lease, the tenant will pay base rent plus some or all of those expenses. Triple-net leases require the tenant to pay base rent plus property taxes, building insurance, and maintenance costs.

Rent escalation clauses will detail how base rent will increase over the term of a lease. Some leases may use fixed percentages, while others may tie increases in rent to the Consumer Price Index or the fair market value of the property. Tenants will need to pay close attention to these provisions to ensure that they understand how their occupancy costs may increase over time.

Lease Term, Renewal, and Early Termination

The length of a lease term and the options available at the end of the term are provisions that may be addressed during negotiations. Renewal options may give the tenant the right to extend the lease for an additional term. A well-negotiated renewal option will specify how the rent will be calculated after a renewal, and it will detail the deadline for exercising renewal options.

Early termination provisions may allow one or both parties to end a lease before the expiration of the term, as long as certain conditions are met. Tenants may negotiate terms allowing them to terminate a lease if they fail to meet certain sales thresholds, or landlords may want to retain the option to terminate a lease so they can redevelop a property. Negotiating terms related to termination can help ensure that the parties understand how these matters will be handled in the future.

Permitted Use and Exclusivity

A commercial lease may detail the ways a tenant can use the leased space, including the specific business activities they can conduct on the premises. A tenant who operates outside of their permitted use of a property may be in breach of the lease. For this reason, tenants will need to make sure permitted use clauses are broad enough to cover their current business activities and potential changes to their business models.

Tenants in properties like shopping centers or office buildings may negotiate exclusive use terms in a lease. These terms will prevent a landlord from leasing other space in the same property to a direct competitor of the tenant. Exclusivity clauses will need to be carefully drafted to ensure that both parties understand the restrictions and the remedies that will be available if the landlord violates these terms.

Tenant Improvements

When a commercial tenant takes possession of a space, they may need to perform construction or other improvements to ensure that they will be able to conduct their business activities. A lease should clearly specify what improvements may be made, who will be responsible for these improvements, and who will pay for construction, fixtures, or other related expenses. The parties will also need to understand what will happen to improvements at the end of the lease.

Maintenance, Repairs, and Common Area Maintenance

Landlords and tenants will need to understand who will be responsible for different types of maintenance and repairs. Landlords may be responsible for structural repairs and exterior maintenance, while tenants may be responsible for maintaining the interior of their leased space. Maintenance of common areas on a property may also be addressed in a lease, and a tenant may be responsible for some of the costs of maintaining shared areas such as parking lots, lobbies, hallways, and landscaping.

Assignment and Subletting

There are some situations where a tenant may need to exit a lease early. To avoid penalties for early termination, they may take steps to assign the lease to another party. Tenants may also wish to sublet a portion of the premises. A commercial lease should address the rights of a tenant regarding assignment and subletting, and it may require the landlord's consent before any assignment or sublease can occur.

Commercial Lease Disputes

When disagreements arise between landlords and tenants, the ways these issues will be handled may depend on the language included in a lease and the decisions that have been made in previous court cases related to commercial property. Our attorneys represent landlords and tenants in disputes related to commercial leases. We may take steps to resolve disputes using negotiation or mediation, and we can also provide representation during litigation when necessary. We can address issues such as:

Rent Disputes

In cases involving nonpayment of rent, a landlord may take steps to recover rent that is owed, and they may also take steps to terminate the lease and evict the tenant. In addition to helping landlords address unpaid rent, we can provide guidance on when tenants may withhold rent or how disputes over rent, expenses, or maintenance may be resolved.

Breach of Lease Terms

Either party may claim that the other party has breached the terms of a lease. Tenants may commit breaches by violating terms related to permitted use, making unauthorized modifications to the premises, subletting without approval, or failing to perform maintenance as required. Breaches by landlords may include failing to perform required repairs, interfering with a tenant's ability to operate their business, or violating an exclusivity clause. Our lawyers can review the terms of a lease carefully and advise clients on how violations may be addressed.

Lease Termination Disputes

Disagreements may arise over when and how a lease may be terminated by either party. If a tenant vacates the premises early, the landlord may take steps to hold them liable for the remaining rent due under the lease. A landlord who terminates a lease without a proper legal basis may face claims of wrongful eviction or breach of contract. Our attorneys can help clients understand how to address issues related to lease terminations, and we may work to negotiate mutual termination agreements when possible.

Contact Our Pikesville, Maryland Commercial Lease Lawyers

Whether you are negotiating a new commercial lease, renewing an existing lease, or have become involved in a lease-related dispute with a landlord or tenant, the lawyers at Fox & Moghul can take steps to protect your rights and interests. Contact our Pikesville commercial lease attorneys at 301-409-5316 to set up a consultation.