The role of a tenant’s lawyer is to get the best deal possible for the client. The purpose of this short article is to look at three different aspects that will be helpful for you as a lessee entering into a new lease, with a focus on your proposed use of the building and the importance of the other tenants around you.
I am a retail lease lawyer named Glenn Duker and I have experience in the retail leasing area across various states of Australia.
The Permitted Use is required to be identified in your Lease. Oftentimes, this is only partially addressed. The wording “Permitted” Use is exactly as it sounds – the tenant is restricted to the confines of the clause as to what commercial use the premises may be used for. An informed tenant will want this to have a very wide scope. Try to envisage that your venture will expand over time and maybe into areas you had not contemplated at first instance. As but one example, if you are a dentist renting a large premises, you may want to be able to go beyond a basic dental use so as to include a doctor’s surgery or some other related service.
The other issue the group (or mix ) of tenants which will likely directly affect your business. For instance, if you are a fast food outlet that sells chicken on a service station site, and say you are the only one when you sign the lease. It is fairly important to you that another chicken shop is not also allowed in during your tenure. This is where a savvy retail lease lawyer will advise you to request an additional condition that adequately addresses this issue.
Another similar issue relates to the anchor tenant. Defined, an anchor tenant is a large tenant which draws in the people, such as a supermarket. As the little guy, you will likely be benefiting quite directly off this passing trade. You should try to get a clause inserted in your commercial lease which empowers you with a right of termination, or at least some monetary compensation, if this main tenant vacates during your lease term.
Overall, a commercial lease is a very important venture. The comments of Glenn Duker in this article are meant as general information only. Make certain that you seek the advice of a lawyer before you commit to a lease.
Want to find more from the author, Glenn Duker, then be sure to visit Glenn Duker’s retail lease site Glenn Duker Retail Leasing Info .
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