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Law Offices of Michael J. Holmes scroll YOUR REAL ESTATE AND BUSINESS SUCCESS IS OUR GOAL

Ground Leases

Commercial Leases: Experienced Counsel for Landlords & Tenants

Whether you’re negotiating a new office, retail, or industrial lease—or resolving a dispute in a high-stakes location—having a
commercial lease attorney who understands market terms and legal risk is essential. We help businesses, property owners,
and investors structure leases that protect cash flow, reduce exposure, and keep operations moving.


Why Hire a Commercial Leasing Lawyer?

Commercial leases are complex contracts with long-term financial consequences. Unlike residential leases, commercial agreements
are heavily negotiated and largely governed by the written terms. Our role is to identify hidden costs, tighten default remedies,
and align the lease with your business model and exit strategy. We combine transactional precision with real-world perspective from
resolving disputes and litigating unlawful detainer actions when necessary.

  • Clarity on Total Occupancy Cost: We model rent, NNN charges, CAM, taxes, insurance, utilities, and escalation clauses.
  • Risk Allocation: Negotiate indemnities, limitation of liability, casualty/condemnation, and force majeure provisions.
  • Operational Flexibility: Secure assignment/subletting rights, options to renew/expand, and signage/branding approvals.
  • Dispute Prevention: Draft clear maintenance standards, notice/cure timelines, and objective measurement of default.

Our Commercial Leasing Services

Lease Strategy & Term Sheet

We start with a business-first strategy: location drivers, build-out timeline, and budget. Then we convert business points into a
letter of intent (LOI) or term sheet that anchors key economic and legal terms—base rent structure, abatement periods, landlord
contributions, renewal options, and exclusive-use rights—so the final lease reflects the original deal.

Drafting & Negotiation

We draft, redline, and negotiate office, retail, medical, restaurant, flex, and industrial leases. For tenants, we seek
fair caps on controllable CAM, realistic repair obligations, and clear TI delivery standards. For landlords, we
focus on credit protection (security deposits, letters of credit, personal guarantees), enforceable remedies, and
streamlined recovery of possession and rent.

Lease Review & Risk Assessment

Already have a proposed lease? We deliver an issue-spotted summary mapping every financial and legal exposure to practical
recommendations. You will know what to accept, what to push, and what to walk away from.

Disputes, Defaults & Unlawful Detainer

When conflicts arise over nonpayment, maintenance, exclusive-use violations, holdover, or early termination, we act decisively.
We pursue negotiated workouts where possible and litigate unlawful detainer actions or damages claims where required,
keeping business disruption and legal spend under control.


Key Issues We Negotiate in Commercial Leases

1) Rent Structure & Escalations

From base-year gross to triple-net (NNN), the rent model dictates long-term affordability. We verify operating expense
definitions, audit rights, and escalation mechanics (fixed bumps vs. CPI) and ensure percentage rent (for retail) keys off the right revenue definitions.

2) CAM, Taxes & Insurance

CAM charges can balloon if not capped. We push for controllable CAM caps, exclude capital expenditures (or amortize appropriately),
and require transparency with annual reconciliation statements.

3) Tenant Improvements (TI) & Delivery

Build-out success hinges on delivery conditions, plans approvals, TI allowances, draw schedules, and delay remedies. We clarify
who owns improvements, lien protections, and post-completion warranties to avoid costly surprises.

4) Use, Exclusives & Co-Tenancy

The permitted use clause must be broad enough for growth and pivots (e.g., retail to showroom + ecommerce fulfillment). For
retail, we negotiate exclusive-use protection and co-tenancy remedies to safeguard foot traffic and sales.

5) Maintenance, Repairs & Compliance

Clarity matters on HVAC, roof, structure, ADA/Title III, and code compliance. We define maintenance standards, response times,
and landlord access rights that minimize operational friction.

6) Assignments, Subleases & Exit Options

Business changes happen. We protect your ability to assign to affiliates, transfer in M&A, or sublease excess space—while limiting
landlord recapture rights and profit-sharing on subrent. Well-drafted SNDAs and estoppel certificates keep financing and transactions smooth.

7) Insurance, Indemnity & Limitation of Liability

We align insurance coverages (CGL, property, business interruption) with indemnities and waivers of subrogation. Where appropriate,
we negotiate mutual limitations of liability to reflect the parties’ risk profiles.

8) Defaults, Remedies & Personal Guarantees

Objective notice and cure periods prevent accidental defaults. We calibrate remedies (late fees, interest, acceleration) and, when
required, narrow personal guarantees to limited amounts or “good-guy” guarantees to balance risk and credit needs.


Industries & Space Types We Serve

  • Professional & Medical Offices
  • Retail, Restaurants & Hospitality
  • Warehousing, Logistics & Light Industrial
  • Technology, R&D, Flex & Makerspaces
  • Franchise Locations & Multi-Unit Rollouts

Our Streamlined Leasing Process

  1. Discovery: We assess goals, budgets, timing, and location drivers.
  2. Deal Modeling: We compare proposals and model total occupancy cost.
  3. Term Sheet: We lock core economic/legal points in the LOI.
  4. Draft & Negotiate: We redline and negotiate for favorable outcomes.
  5. Execution & Compliance: We finalize certificates, SNDAs, estoppels, and key dates.
  6. Dispute Support: If issues arise, we pursue cure strategies or litigation as needed.

Commercial Lease FAQs

What is the difference between gross, modified gross, and NNN?

In a gross lease, most building expenses are in the base rent. Modified gross splits certain costs between parties.
NNN (triple-net) passes taxes, insurance, and CAM to the tenant, often with annual reconciliations and estimated monthly payments.

How can I limit unpredictable CAM increases?

Negotiate a cap on controllable CAM, exclude capital expenditures or require amortization, and preserve audit rights with
deadlines and document access.

Do I need an SNDA?

A Subordination, Non-Disturbance & Attornment (SNDA) agreement helps ensure your tenancy survives a lender foreclosure if
you’re current on obligations—critical protection for tenants investing in build-outs or location-dependent businesses.

Can the landlord recapture if I try to assign or sublease?

Many leases include recapture rights giving landlords the option to terminate rather than approve a transfer. We narrow or remove
recapture and preserve reasonable transfer options for affiliates, mergers, or partial subleases.

What if the space isn’t ready on time?

We build in realistic delivery timelines, outside dates, rent abatement or termination rights for extended delays, and clear remedies for
late TI completion.


Get Practical, Deal-Savvy Lease Counsel

Every lease should advance your business plan, not threaten it. From NNN and CAM to TI allowances, SNDAs, assignments, and
unlawful detainer strategy, we negotiate and enforce terms that protect your capital and flexibility.
Contact us for a focused consultation, or contact our office today at:

Idaho: (208) 696-2772

Southern California: (714) 464-5188

Northern California: (707) 207-8005

Texas: (469) 535-6260

Washington: (206) 279-4780

Commercial Lease Lawyer

We counsel landlords, tenants, and investors across the United States and the surrounding region on office, retail, and industrial leases—bringing
local market knowledge to national-quality drafting and negotiation. If you are planning a relocation, expansion, or renewal, speak with our team before you sign.

 

Copyright © 2024 Law Office of Michael J. Holmes. All rights reserved. While we welcome inquiries, until a retainer agreement is signed by the attorney, no attorney client relationship is formed.