MANAGEMENT
The Commercial Tenant
Clauses to look put for in Commercial Leases
BY MARLON SHEVELEW
C
ommercial tenants aren’t as well protected
by legislation as residential tenants, so make
sure your lease doesn’t expose you to losses.
One of the largest expenses facing a business is
the monthly rental for its premises. It doesn’t help
that, often, the business owner is substantially
disadvantaged during the lease negotiation.
In my experience, the landlord is usually more
sophisticated and experienced at negotiating a
lease and often uses the services of an attorney or
management company.
These persons, who negotiate leases all the time,
often design leases, which look attractive, but are
actually filled with clauses which are disadvantageous
to the business owner.
It is therefore vital to carefully and properly
negotiate the terms of a commercial lease before
committing to the expenses of moving into a
property.
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Commercial Handbook 2016
Commercial leases are often extremely long,
with small print and complex provisions; so obtain
proper legal advice during the negotiations. In most
cases, when we do act for tena nts, I find that clients
come to me only when a dispute emerges, long after
signing the lease.
1.Fittings and Fixtures:
“Fittings and fixtures” clauses can deprive the tenant
of ownership over all equipment and improvements
installed on the property at the end of the lease.
Many tenants actually close down their business
rather than facing the economic consequences of
losing all their equipment and property.
During the negotiation of the lease, tenants should
specify which pieces of machinery or equipment
they regard as personal property, and are entitled to
remove at the end of the lease agreement.
Include such items in the lease under a proper
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