Another Thought for Commercial Leases

Are attorney drafted commercial leases perfect? Hmmm…

Yes, we hated lawyers diligently attempt to draft leases that envision most difficulties.  Yet, the new surprises never seem to go away.  (Yes, purists, I know that the last sentence is not quite correctomundo).

What if you leased an office suite with a gorgeous view from the sixth floor?  Do you want a guarantee to protect that view?   Would a landlord give that guarantee?  Can the landlord provide such a guarantee? Take a long look at the attached photograph.  As a tenant, imagine how you would you feel if you had just committed to a seven-year lease and then a neighbor, or worse, your own landlord started construction of a whole new building blocking your coveted view? 

Does it make a difference if the construction was performed by your same landlord versus a neighbor?

The new construction likely affects traffic and your customer’s ability/desire to deal with the extra traffic and parking headaches.  Can your lease terms give you an escape or some relief?  Do you know before you entered into the lease that new construction was planned during the duration of your lease? The lesson here is to make sure that you and your hated lawyer take the time to anticipate as many possibilities as possible. Can you know what building permits have been sought from the municipality or do you know what all owners in your area are contemplating?   Likely, no one can know everything that developers may contemplate.  Yet, your lawyer and you need to try so that you minimize the possible actions that could affect the value of your leased premises.

Be Careful out there and remember to consult your “hated lawyer” before entering into any contractual obligation.