Is commercial lease break clause?

A commercial lease contract may contain a clause permitting the tenant to terminate the lease without being obligated to pay the remaining rent balance under the lease agreement. This early termination clause is sometimes referred to as a break clause.

What does as is mean in a lease?

The “As-Is” clause generally says that the tenant accepts the property “As-Is”. The landlord argues that the tenant accepted any dangerous conditions on the property. The landlord will then use the “As-Is” clause in litigation to argue the tenant cannot sue the landlord.

Is rent the same as lease?

Rental agreements are very similar to lease agreements. The biggest difference between lease agreements and rental agreements lies in the length of the contract. Unlike a long-term lease agreement, a rental agreement provides tenancy for a shorter period of time—usually 30 days.

What are the clauses in a commercial lease?

The most common are upwards only open market rent reviews. It is essential that you are aware of such a clause and the potential increase in rent during the course of the term. The frequency of the rent review is also up for negotiation and you do not want to be having a rent review frequently.

What happens at the end of a commercial lease?

This is a lease where the tenant is obliged to bear the costs of all repairs and insurance for the full extent of the property that he/she is taking on and can mean that the tenant is obliged to hand back the property at the end of the term in ‘nearly new’ condition.

What do you need to know about lease terms?

Lease Clauses 1 Sublease Clause. Subleasing is where a tenant leases unused space in their lease agreement to another tenant. 2 Exclusive Right. The exclusive right clause or exclusivity clause, often found in retail leases but can be seen in any industry, gives the tenant the right to be the only 3 Rent Escalation. …

Where can I find a commercial lease agreement?

EX-10 2 elmonteleaseforfiling.htm MATERIAL CONTRACT SAMPLE COMMERCIAL LEASE AGREEMENT COMMERCIAL LEASE AGREEMENT

What clauses should a commercial lease contain?

Most commercial leases contain a rent escalation clause that explains how and when the tenant’s rent will increase during the lease term. Escalation clauses may specify a fixed increase in rent over a period of time, typically annually or biannually, or when the landlord’s taxes, insurance, operating and maintenance costs increase.

What can be negotiated in a commercial lease?

Term (Duration of the Lease)
Description of the Premises
and Operating Expenses
Built-Out and Tenant Improvements
Anchor Tenant and Non-Competition Clauses
Early Termination
Compliance with Laws
Indemnification and Insurance
Renewal Rights
Subletting and Assignment Rights

What are the typical clauses in a lease agreement?

A typical lease agreement contains the following clauses: 1. Nature of the lease: This clause specifies whether the lease is an operating lease, a finance lease or a leveraged lease.

What is an option clause in a commercial lease?

An option clause is a term in a commercial or retail lease that permits a tenant to renew their lease at the end of the initial lease period. However, they must meet certain conditions. For example, a three-year lease may also have one three-year option, making it six years if the tenant chooses to exercise the option.