The leasing of real property has long-lasting consequences for landlords and tenants. Commercial leases usually involve arm’s-length negotiations where value can be obtained or lost, and understanding a landlord’s tolerance for assuming or avoiding risk is very important. Like the sale of real property, a lease conveys rights to a tenant that are similar to ownership and need to be understood by the landlord.
Even further, the financial solvency of the tenant is very important, as well as any personal guarantees provided for in the lease. Although a tenant may be willing to pay above market rent, such a reward usually involves financial risk and many real estate leases end up involving litigation to collect unpaid rent or damages.
Our office has been assisting real property owners for more than 50 years in structuring lease agreements for many different types of property.