Commercial Lease Attorney in Palm Desert, California

If you want to open a business outside of your home, you will no doubt need to find a location that fits your needs and that can attract the type of customers you desire. You can either purchase a commercial structure or you can lease what you need from the owner of a commercial property (i.e., a landlord). Generally speaking, most entrepreneurs or business owners will opt to lease because of the costs involved in purchasing and maintaining commercial real estate. 

Commercial leases are different than residential leases in most cases. For instance, a residential lease is usually more open-ended in terms of length, while a commercial lease is more restricted. Other considerations play a factor in commercial leases that may not be present in residential leases. 

If you are looking to lease commercial space for your business in or around the Coachella Valley, contact Law Offices of Jerry J. Goldstein. Our business and commercial lease attorney will help you negotiate the best terms possible. 

In addition to the Coachella Valley, we also provide services to communities in and around Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San Diego counties. 

Commercial Landlord-Tenant Rights and Obligations

Commercial structure owners have much discretion in the types of business they can allow in that structure. They can also set the rules for signage, modifications allowed, insurance needed, subleasing options, and more. Additionally, they can establish the lease amount, when it is due, and whether there are additional fees and/or utility payments. 

This may seem like the landlord can dictate from on high, but California law bestows certain rights on tenants and as a corollary, imposes regulations on landlords. The primary right of a commercial tenant in the Golden State is to a safe and inhabitable property. The landlord must maintain the property in good condition, ensuring that it meets all building and safety codes.

Important Provisions of a Commercial Lease 

Given that perspective, an entrepreneur or business owner looking to lease commercial space can certainly negotiate to obtain the best terms possible. In this give-and-take, the landlord may get the upper hand on certain issues, and perhaps the tenant can win some concessions in other areas. The major areas of concern to a tenant, though this list is not exhaustive, are: 

• LEASE TERM: When does the agreement begin and when does it end or need to be renegotiated?  Are there any options to extend the term of the lease? On what terms?

• RENT AND PAYMENT TERMS: How much is rent, when is it due, and when can it be raised during the lease term? Also, are there other charges involved? What about utility bills?  Typically in office leases utilities are incorporated in the rent, whereas in leases of warehouses, the terms are generally "triple net" (i.e., the tenant pays all utilities, property taxes, and insurance premiums).

• MAINTENANCE AND REPAIR: Determining who pays to keep the premises safe and functional. 

• PERMITTED USE: Defining the purposes for which the space can and cannot be used. 

• ALTERATIONS AND IMPROVEMENTS: Specifying to what extent, if any, the tenant can alter the premises for their business purposes., and whether the landlord will provide a so-called "tenant improvement allowance" ("TI allowance") for all or a portion of the costs.

• LEASE RENEWAL AND TERMINATION: Can the lease be terminated by the tenant prematurely, and if so, under what terms? Once the lease runs out, what are the steps to renew it? As a corollary, can the tenant sublease the space? 

• INSURANCE AND LIABILITY: The landlord may require liability or other insurance, and the tenant should also explore all avenues to property insure their enterprise. 

• DISPUTE RESOLUTION: The landlord may include mediation or arbitration clauses in the lease. The tenant may want more robust options if a dispute evolves.