Commercial Real Estate
Landlords and Tenants should anticipate a long-term working relationship when negotiating lease terms and provisions. The basic terms for consideration include the duration of the lease, rental rate, permitted use(s), and quality of the premises upon delivery. Once the basic terms are established, there are various considerations that should be incorporated into the lease provisions, such as assignment rights, maintenance obligations, occurrence of fire or hazard, as well as default or breach of contract.
The purchase and sale of commercial property is lengthier, more expensive, and higher risk than residential property transactions. Purchasers should meticulously determine the valuation of the deal prior to signing the Letter of Intent; and once under contract, diligently investigate the property during the prescribed time-frames. Sellers should heed caution to ensure title is marketable – free and clear of restrictions, liens and encumbrances – for a prospective buyer to pay a premium.
Nikhil Vyas, Esq.
Negotiations that are truly ‘win-win’ can result in a satisfying relationship for Landlord and Tenant and a rewarding experience for both Purchaser and Seller.