After constructing a new shopping center here in California, you may already have tenants lined up to occupy the space. As you work toward the official opening of the property, you will more than likely need to negotiate a commercial lease with each tenant. Even though there may be certain items specific to each tenant, each lease may need to include some standard provisions.
An important issue for both you and your tenants probably surrounds the issues of liability and insurance. You may be required to carry a certain insurance and accept a certain amount of liability for common areas, but it may be in your best interest to specify the amount of coverage and liability that the tenant must assume. The same could be said for any repairs and maintenance that the rented space will need during the time the tenant remains in it. The tenant may also want to know what responsibility, if any, it will have regarding the common areas of the shopping center.
You may also restrict what business the tenant may conduct in the space, along with what improvements or expansions may take place. Will your tenant be restricted in any way due to zoning issues? Will the tenant require your approval? You may also want to preserve your right to make reasonable increases to the rental payments under certain conditions.
These are just some of the fundamental issues that you need to consider when negotiating a California commercial lease. Your lease also needs to outline your rights and responsibilities should anything go wrong. In order to help ensure that your rights are protected, and that everything you need is included in the final lease, you may benefit from involving an attorney in your negotiation, drafting and execution processes.
Source: FindLaw, “Commercial Lease Provisions“, Accessed on Sept. 24, 2017
