Commercial Leases — Be Wary of ‘Boilerplate’ Provisions That Can Bite
Lane Powell Shareholder Scott Campbell authored an article in Seattle Business magazine’s August 2012 issue titled “Commercial Leases — Be Wary of ‘Boilerplate’ Provisions That Can Bite.” In the article, Scott discusses commercial lease provisions that should not be overlooked, including compliance with laws, force majeure, surrender and holding over provisions.
Commercial leases are in many ways the most complicated of real estate transactions. When you buy a piece of property, the purchase agreement sets forth the terms of the purchase, and once the transaction has closed, most of those terms are no longer needed. On the other hand, when you enter into a lease, the lease agreement will include terms that will govern your relationship between the parties for the entire term of the lease, whether it’s five years, 10 years or longer. Much time and energy is spent negotiating the rent, the common area costs and other important economic terms. But there are other provisions, ones that are often overlooked as “boilerplate” provisions, which may have a significant impact on both parties.