BBG News

Essential Clauses in Commercial Lease Agreement

Feb 2, 2024

When leasing commercial properties, landlords must secure their interests by incorporating crucial clauses in lease agreements. These clauses act as shields, protecting landlords from potential risks, liabilities, and ensuring a smooth landlord-tenant relationship. At BBG, our legal experts recognize the importance of these clauses in safeguarding your assets and rights as a landlord. Let’s explore the pivotal clauses that should form an integral part of your commercial lease agreements.

1. Rent Payment and Escalation Clause

Ensuring clarity regarding rent payment terms is crucial. Include specifics about the rent amount, payment frequency, acceptable payment methods, and late payment penalties. Additionally, an escalation clause allows for periodic rent increases, aligning with market conditions or triggering events.

2. Maintenance and Repairs

Clearly outline the responsibilities for property maintenance and repairs. Specify which party (landlord or tenant) bears responsibility for maintenance tasks and the process for handling repairs. Such clarity prevents disputes and ensures property upkeep.

3. Use and Occupancy

Define the permitted use of the property and restrict any unauthorized activities. Detail the type of business allowed and any prohibited activities to maintain the property’s intended use and avoid legal complications.

4. Subleasing and Assignment

Set conditions for subleasing or assigning the lease. This clause outlines whether the tenant has the right to sublease the property or transfer the lease to another party. Clearly stipulate the landlord’s approval process for such arrangements.

5. Termination and Default

Establish clear terms for lease termination, both voluntary and involuntary. Include provisions detailing actions to be taken in case of lease breaches or defaults, protecting the landlord’s rights in such scenarios.


Safeguard Your Property With BBG’s Legal Expertise

Ensuring your lease agreements contain these crucial clauses is essential in protecting your property and interests as a landlord. Contact BBG today for legal guidance in drafting comprehensive commercial lease agreements tailored to safeguard your assets.

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6. Insurance and Indemnity

Require tenants to maintain insurance coverage and include an indemnity clause. This protects landlords from liability arising from tenant actions or events within the premises.

7. Renewal and Right of First Refusal

Specify conditions for lease renewal and whether tenants have the right of first refusal. This clause outlines the process and terms for renewing the lease or granting tenants priority for leasing additional space.

8. Compliance With Laws and Regulations

Include a clause that requires tenants to comply with laws and regulations. This protects landlords from legal consequences arising from tenant non-compliance with laws applicable to the property.

Let BBG Protect Your Interests in Commercial Lease Agreements

As a landlord, securing your property and rights through well-drafted lease agreements is paramount. BBG’s legal team aids in protecting landlords’ interests and assets. Reach out today to ensure your commercial lease agreements are robust and safeguard your interests effectively.

By incorporating these clauses into your commercial lease agreements, landlords can shield themselves from potential risks and ensure smooth and mutually beneficial landlord-tenant relationships. Trust BBG’s legal expertise to fortify your lease agreements and protect your property and interests. Contact us now to strengthen your commercial lease agreements!

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