If you're ready to jump into a commercial lease at a local mall, take a second to consider a few things that could affect you. Depending on the lease and the things you want to do, you need to be sure you're signing a lease in your benefit. Here are a few things you can do to make sure your business is protected.
The statewide legalization of recreational marijuana use continues to create frustrating legal conflicts, especially when it comes to where one can legally possess or use marijuana. Many tenants now face the difficult reality that their landlords may forbid them from growing, smoking or even keeping marijuana on the premises. Is this legal for landlords to do? It all depends on your lease.
Negotiating a franchise lease can be much trickier than just a simple commercial lease because there is a third party in the mix. Your lease is not only a contract between you and the landlord, but it is contingent on your franchise arrangement with the franchisor. A commercial lease can be hundreds of pages long, and there is a lot to work out before you ever get to signing a lease as a franchisee.
As the infrastructure necessary to support the recreational and medical use of marijuana continues to build out in California, more and more entrepreneurs and real estate developers are seeking to adjust their plans to include elements of these newly minted business opportunities. However, the road to receiving the proper licenses required to play in this emerging space is not as simple as filling out forms and paying some fees. Developers who wish to make marijuana part of the picture officially must still receive the official approval of local officials.
Developing real estate can be endlessly complex, especially in southern California, where we have a tendency to be well ahead of the curve in the areas of regulations and guidelines for property development. As new technological advances change the landscape of how we think about building cities and creating spaces that stand the test of time, the process only becomes more complicated.
Real estate development creates many opportunities for conflicts of interest and violations of contractual obligations. In each phase of your project, it is crucial to have very specific, well-crafted contracts to protect your interests and ensure that the contractors and subcontractors involved in the project understand the exact scope of their duties and the penalties for not meeting those expectations.