A commercial real estate attorney can save you money during your lease term!
The commercial real estate attorney must be consulted at the beginning of the transaction.
The Business of Staying in Business
A qualified commercial real estate attorney will help your business stay in business. Landlords often place disclaimers in their leases stating that both parties have been advised to retain counsel. There’s only one time in the entire lease transaction where Tenant can protect its rights and its business investment, and that’s before the lease agreement is signed.
The commercial real estate attorney will be your advocate, mitigating your legal risk, protecting your assets and making sure you understand what you are agreeing to and the consequences of that agreement.
Real Estate Brokers: Landlord and Tenant Representation
Real estate brokers are paid on commission, by Landlord. They get paid when the deal is done, and they have an interest in seeing it commence. The listing broker, while usually very nice, does not work for Tenant, and does not represent Tenant’s interests.
The broker is responsible for negotiating the business terms of the lease, but they are not lawyers and cannot give legal advice. They can help you find the location and negotiate business items, but they do not offer a legal perspective.
The attorney’s compensation isn’t tied to the transaction, which means a balanced perspective on the entire negotiation process, and representation in the best interest of the client.
Landlords are in the business of being owning and managing property profitably, and will have professional service providers working for them and protecting their interests. Tenant also needs a professional to represent them in the transaction. It’s a signal of sophistication and professionalism, and an indication of a thoughtful tenant setting up for success. The Landlord will not be offended if Tenant engages a commercial real estate attorney.
The commercial real estate lease is usually one of the most complex and expensive transactions in a business life cycle. It’s a long-term, binding legal commitment, and it’s not easy or cheap to change after signature. Consumer protection laws don’t apply, like they do in residential real estate transactions. Landlords don’t use standard contracts, but have custom forms that are drafted to favor them. Landlord expect a savvy tenant to negotiate.
What a Commercial Real Estate Attorney Does
A dedicated commercial real estate attorney will provide a legal review and negotiate with your end goal in mind. Tenant want a predictable price for a safe and secure place to operate, and Landlord wants steady cash flow and a fully leased location. Don’t use an attorney that has “leasing” or “real estate” as one bullet point among many; chose someone with experience in your market, your industry, and with your type of lease.
You need a representative and an advocate who can provide strategic, business-oriented legal advice to move the leasing transaction to completion without sacrificing financial or legal protections. A good real estate broker can make a recommendation. An experienced commercial real estate attorney will protect your interests and help reach your ultimate goal: get the rights and responsibilities of each party outlined, and to negotiate a fair and equitable commercial real estate lease agreement.