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Some Key Points to Consider When Entering a Commercial Lease as a Tenant – Part One
Taimoor Qureshi
October 24, 2024
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You may have started a business recently and are now looking for a location from which you will operate said business.
As you are in the early stages of your business, chances are that the property from which you will operate said business will likely not be owned by you. Instead, you will be looking for a commercial space to lease from which you can operate your business.
Commercial leases usually contain a myriad of legal terms and conditions which if not negotiated thoroughly can lead to payments of thousands of dollars beyond the base rent.
Some of the keys items that should be discussed include but are not limited to whether there is a requirement for an indemnity from the principal(s) of the tenant corporation; what is covered as part of Additional Rent beyond the agreed upon Base Rent; rights to assign the lease; rights to sublet the lease; rights of renewal and extension; right of first refusal on a purchase offer received by the Landlord; insurance requirements and liability; any rent-free fixturing period; tenant-work vs landlord’s work; right to relocate; and much more.
The issues mentioned above are just the tip of the iceberg for negotiations in a commercial lease.
That is why it is vital that prior to signing any commercial lease agreement, to have it reviewed by a lawyer who is well versed in commercial tenancies.
For more information about this topic, please feel free to contact one of our lawyers! Email us at info@kormans.ca or call (905) 270-6660.
Taimoor’s practice areas include Commercial law; Commercial Leasing; Corporate law; Mortgages; Residential Real Estate; and Wills and Estates.Taimoor was called to the Bar of Ontario and joined Kormans LLP in January 2019.Prior to joining Kormans LLP, Taimoor articled and clerked for boutique law firms where his exposure to residential and commercial matters from beginning to end helped develop his knowledge and skills in the aforementioned areas of la.
Taimoor is a strong believer in efficient client communication and does his best to keep clients as up to date as possible along all steps of a transaction.In his spare time, Taimoor is an avid follower of all major sports and enjoying the outdoors during the summer months.
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