Where to go for commercial leasing advice as a tenant?

[Hack&Lube]

I'm looking at signing a commercial lease for a property as a tenant in the next week or so but every time I've sat down with any kind of lawyer over the past 2 years, it's been pretty unhelpful.

The conversation usually goes "tell me you want me to write down" and "okay I'll write it down for $200 an hour" and they are usually dragging out the conversation for billable time or obviously not knowledgeable in, versed on the subject, or necessarily a subject matter expert working in my best interests. The problem is that I don't know what I want or need to write down for my own protection or what is standard in the industry or what red flags to look for.

Am I going about this the wrong way? In the same way that their are financial planners and advisers, is there someone who can advise me on commercial tenancy law and what I need to do to protect myself in terms of conditions, exit clauses, etc. that I should ask for the landlord to put into the agreement? Maybe other tenants that have gone through this experience before or have positive/negative experiences? Googling brings up a ton of noise and it's difficult to narrow down what I should make sure we have in writing or ask the landlord to put in or take care of.

[Locke]

Have you considered asking a Commercial Realtor? I know J Pold for instance is one.

[J pold]

PM'd.

[Kjesse]

As a tenant the landlord will almost always insist on their form of lease, which is subject to negotiation as sometimes they will propose clauses that some tenants should never agree to.

A good lawyer who is well versed in commercial leases should be able to tell you what the concerns about the lease should be. There are some very landlord friendly and some very tenant friendly lease forms out there.

But also, being a good client means you also read the lease and understand its implications so you can voice some concerns. Don't hire a lawyer to explain the lease clause-by-clause, read it, understand it. Then you can ask smart questions.

I see no problem enlisting the help of a commercial realtor, as long as they truly do understand commercial leases and the various options out there. The problem is, they typically are out of the transaction by the time they get their commission, so may not be informed as to the pitfalls that can happen. Experience for realtors varies as much as experience for lawyers.

In these kinds of cases, unless the smaller firm holds themselves out as having specific commercial leasing expertise, you're probably better off with a larger firm, and while more expensive from an hourly point of view, they'll probably save you money because they will have legal experts who know what they're doing. Don't be afraid to call Bennett Jones (for example) just because they're Bennett Jones. Sure, they have huge overhead and it shows in their rates, but in many respects they have expertise that justifies those rates from a value perspective.

[J pold]

Originally Posted by Delgar

As a tenant the landlord will almost always insist on their form of lease, which is subject to negotiation as sometimes they will propose clauses that some tenants should never agree to.

A good lawyer who is well versed in commercial leases should be able to tell you what the concerns about the lease should be. There are some very landlord friendly and some very tenant friendly lease forms out there.

But also, being a good client means you also read the lease and understand its implications so you can voice some concerns. Don't hire a lawyer to explain the lease clause-by-clause, read it, understand it. Then you can ask smart questions.

I see no problem enlisting the help of a commercial realtor, as long as they truly do understand commercial leases and the various options out there. The problem is, they typically are out of the transaction by the time they get their commission, so may not be informed as to the pitfalls that can happen. Experience for realtors varies as much as experience for lawyers.

In these kinds of cases, unless the smaller firm holds themselves out as having specific commercial leasing expertise, you're probably better off with a larger firm, and while more expensive from an hourly point of view, they'll probably save you money because they will have legal experts who know what they're doing. Don't be afraid to call Bennett Jones (for example) just because they're Bennett Jones. Sure, they have huge overhead and it shows in their rates, but in many respects they have expertise that justifies those rates from a value perspective.

This is an insightful post on the topic. A commercial realtor should be present in the transaction until the tenant is happily in and operating in the space. I review everyone of my clients lease agreements after we have negotiated the offer and the business terms are agreed to. We provide insight and recommend changes to relevant leasing clauses to make them more favorable to the Tenant. That said, I do always recommended that a good experienced commercial real estate lawyer, who understands lease agreements review as well. There are some areas of the lease that a good lawyer can add a ton value while helping to get the deal done. On the flip side I’ve worked with lawyers who are not well versed in commercial leases make things far more complicated than they need to be in order to rack up billable hours. I agree Bennett Jones is a great firm.