Skip to content
Holmes Business Law
Holmes Business Law
215-482-0285
  • Home
  • Attorney’s & Areas of Law
    • Business Entities
      • Corporations
      • Limited Liability Company (LLC)
    • Business Purchase or Sale
    • Raising Capital & Investor Agreements
      • Promissory Notes and Debt Financing
      • Private Placement and Equity Financing
    • Business Contracts
      • Consulting Agreement
      • Employment Contracts
      • Independent Contractor (1099) Agreements
      • Website Terms and Privacy Policies
    • Copyright & Trademark
    • Hiring Employees/NDA/Non Compete
    • Succession Planning
    • Commercial Lease
    • The Right Start Program
  • About
    • Speaking & Events
    • Webinars
    • Client Testimonials
    • Privacy Policy/Terms of Use
    • Contact
  • Business Success Tips
  • Flat Fee Services
    • New Businesses
    • Existing Businesses
    • Dispute Resolution
    • Trademarks & Copyright
    • Succession Planning
  • 215-482-0285

Review that Lease – Lest You Get Burned

10/16/2013
 

One area where many small business owners skimp on legal advice is with their commercial lease. If you’re not careful and do not have a lawyer review your lease, you could be in for years of problems.

Most commercial leases are for a long term, typically three, five, ten years or more. One area to keep an eye on in your lease is the amount of rent. Sounds easy, right? You find a nice space that advertises itself for $1,000 per month. You get excited, run your numbers and decide your business can afford to pay $1,000 a month in rent. Not so fast. Look closely at the area that discusses the rent charges. Typically a lease will specify the amount of base rent to be paid and then there will be additional paragraphs that address additional rent. What is included in additional rent? A large number of things, depending on your landlord. Use and occupancy tax could be added, utilities, past due charges, many items might be specified, make sure you understand how much will really be added to the lease each month. If you aren’t comfortable with the arrangement, negotiate!

Another area to closely watch is for any rent escalation clauses. As I pointed out above, a commercial lease is usually for a long period of time, several years or more. Do you think your landlord is okay with you paying the same amount of rent for five years or more? Think again. There is likely a rent escalation clause in the lease specifies what the base rent will be in years two, three, four and five. Make sure the exact amount is noted, along with the exact dates of when the new base rent rate applies.

I am an attorney that reviews commercial leases for a very reasonable rate. It’s money well spent to make sure you are not placed in a bad position today or several years down the line when you are locked into an unfavorable lease. Drop me a line today about reviewing your commercial lease.


Author

Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.

Categories

  • Uncategorized

Archives

  • May 2022
  • April 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • June 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • May 2017
  • April 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013

HOLMES BUSINESS LAW, P.C.

​1515 Market Street, Suite 1200,
Philadelphia, PA 19102
___________________________
40 E. Montgomery Avenue
4th Floor, Ardmore, PA 19003
​

​© 2022 by Holmes Business Law P.C.
All rights reserved.

  • ATTORNEYS & AREAS OF LAW 
  • Business Entities
  • Business Purchase or Sale
  • Raising Capital & Investor Agreements
  • Business Contracts
  • Copyright & Trademark
  • Hiring Employees/NDA/Non Compete
  • Succession Planning
  • Commercial Lease
  • The Right Start Program
  • BUSINESS SUCCESS TIPS

  • ABOUT 
  • Speaking and Events
  • Webinars
  • Client Testimonials
  • Privacy Policy/Terms of Use
  • Contact
  • FLAT FEE PACKAGES 
  • New Businesses
  • Existing Businesses
  • Dispute Resolution
  • Trademarks & Copyright
  • Succession Planning

  • REVIEWS

​All site content is subject to copyright 2021 by Holmes Business Law P.C.
This website and its content herein constitutes attorney advertising.  Any content on this website should be construed as informational, not legal advice.  No information on this website is intended to create an attorney-client relationship.  Only a signed fee agreement between Sarah E. Holmes and the client will establish an attorney-client relationship.  Use of any information on this site is provided “AS IS” with no warranty of any kind, either express or implied.  Always consult with a licensed attorney in your own state for legal advice.