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Commercial Tenancy and Business Disputes with Landlords

Commercial Tenancy and Business Disputes with Landlords

As a business owner, choosing the right commercial property and negotiating the terms of a lease can directly influence your bottom line. From the items which are included in your rent, to the freedom you are given to customize your space, it is vital to understand the exact terms set out in a lease agreement. Once a contract has been signed, disputes which arise can be difficult to resolve. In some cases, mediation can result in an agreement, but frequently, litigation may be the only route.

It is also important to note that in Arizona there are separate laws which govern commercial and residential property leases. Commercial tenants do not share the same legal protections as their residential counterparts, however, there can be more room for flexibility and negotiation in the creation of contracts.

Negotiating Commercial Property Leases to Fit Your Business Model

When you are considering leasing a new property or are experiencing a dispute over the terms of an existing agreement, it is important to carefully review each aspect of a contract. An attorney experienced in commercial tenancy law can provide the needed legal advice to ensure your interests are protected.

Commercial lease disputes can arise from contract terms including:

  1. Permitted businesses: As a business owner, it is generally more profitable to have exclusive use of a space regarding the markets in which you compete. It can be concerning if a direct competitor is allowed to use a space in close proximity or adjacent to your business.
  2. Procedures for early termination: While landlords may look for the security of a set income, no one is able to accurately predict the future. Market trends can shift in an instant and what was in your best interest yesterday, may no longer be the right path going forward. Including terms for early cancellation can allow for more flexibility if you find your business growing past what the building can sustain.
  3. Placement of company signs or logos: A landlord may want to approve the type, size, or placement of company advertisements such as signs and logos. Contracts can also contain language which regulates new features which are allowed to be built if they restrict the areas from which a sign may be viewed.
  4. Total cost: While rent is a principle concern when leasing any structure, the total cost can also be affected by factors such as taxes, utilities, and maintenance of common areas (repairs, plumbing, gardening). The total costs of conducting business in a specific location must be weighed gains the benefits and profitability of the location. The lease will also outline the areas which you are authorized to use. This can include common areas, elevators, and parking spaces.

Need a Phoenix Real Estate Attorney? Call (480) 632-1929

Do you need legal advice concerning the terms of a commercial lease? The Phoenix real estate attorneys at Schern Richardson Finter Decker are here to help. We have successfully represented clients in complex commercial disputes, litigation, and real estate transactions. Our attorneys are skilled negotiators and are ready to fight for you in court when necessary.

Questions regarding the terms of your lease? Schedule a free consultation to discover your options.