Towson, MD Commercial Lease Lawyers

Attorneys Representing Landlords and Tenants in Lease Negotiations and Disputes in Towson, Maryland

A commercial lease is not just a formality that will need to be addressed before a tenant occupies a space. A lease is a binding legal contract that will establish an ongoing relationship between a landlord and a tenant. The terms of a lease agreement will control what each party can do and what options are available when something goes wrong.

For landlords, a well-drafted lease will ensure that they receive consistent rental income while protecting against physical damage to a property and limiting their exposure to liability. For business tenants, a well-negotiated lease will ensure that a space will serve the business's needs, that costs will be predictable, and certain protections will be provided. Getting these details right will require legal experience and careful attention to the needs of a landlord and tenant.

At Fox & Moghul, our attorneys work with commercial landlords and business tenants to create strong commercial lease agreements. We can also help clients determine how to address disputes that arise during a lease. With our understanding of the commercial real estate market and the legal issues that can affect our clients, we can help ensure that lease agreements will be effective.

Rent: Amount, Payment, and Structure

The rent provisions in a commercial lease may not simply provide a single monthly amount that will be paid. The amount of rent that will be owed, when payments are due, any additional costs that will be included, and how rent will change over time are all issues that will need to be addressed in a lease.

In addition to monthly base rent, a lease may address the property's operating expenses. The parties will need to understand who will pay taxes, insurance, and maintenance costs. In some cases, all of these costs may be paid by the tenant, while in others, the landlord may be responsible for certain expenses. Our attorneys can help clients understand how the terms of a lease will affect their financial obligations, which can help prevent disputes after a lease is signed.

Most commercial leases include terms that will increase the amount of rent payments after a certain amount of time has passed. They ways rent increases will be handled may affect both parties. Fixed-percentage escalations, such as a three percent annual increase, can provide predictability. In some cases, rent escalations may be tied to other factors, such as inflation trends, the fair market value of the property, or the tenant's business revenue. Our lawyers can review rent escalation provisions carefully and advise clients on the long-term financial implications of different escalation structures. We will work to negotiate terms that will protect our client's financial interests.

Permitted Use and Exclusivity

The provisions of a lease may govern what will happen in the leased space. They can affect a tenant's ability to operate their business, and in some cases, they may help protect against competition.

Permitted use clauses in a lease will specify the business activities the tenant may conduct on the premises. They may also provide restrictions on certain activities, including any criminal conduct or actions that could damage the property or put people at risk of being injured. A tenant will want to make sure the permitted uses detailed in a lease will include their current operations and any foreseeable changes that may occur in the future. Our attorneys can help ensure that permitted use terms are specific enough to help a landlord protect their property, but broad enough to ensure that a tenant can conduct business successfully.

In certain types of multi-tenant properties, a tenant may negotiate terms that provide them with exclusivity. These terms may prevent the landlord from leasing property to another tenant that would operate a business competing with the first tenant. An exclusivity provision that is too narrow may not cover all forms of competition, but a provision that is too broad may cause difficulties for the landlord. Our lawyers can help clients put the proper exclusivity provisions in place while paying close attention to how these details may affect landlords and tenants.

Property Improvements

Modifications may need to be made to a property to meet a tenant's needs. Ongoing improvements may also be made as a tenant conducts operations. A lease may address who will be responsible for construction work or other types of changes. It may provide details about the standards of work, who will be responsible for paying for improvements, and other rights and obligations related to modifications that are made. Our attorneys can help tenants and landlords reach agreements on how improvements will be handled.

Lease Renewal or Termination

Terms related to the duration of a lease and the options available at the end of a lease's term can shape the relationship between a landlord and tenant. Renewal options may be included in a lease, giving the tenant the right to extend the lease as needed. A well-drafted renewal option will detail the procedures followed when requesting a renewal, the deadlines that will apply, and the methods that will be used to calculate rent after a renewal.

A lease will also include termination provisions that determine when one or both parties may end the lease. Tenants may negotiate for the right to terminate a lease after a certain period of time. Landlords may negotiate for termination rights in situations where they may plan for the redevelopment of a property or when a tenant has failed to meet certain requirements. Terms may detail the situations in which a termination will be permitted, notice requirements, and other details. Our lawyers can make sure the proper terms related to renewals and terminations will be included in commercial leases.

Contact Our Towson Commercial Landlord/Tenant Attorneys

A commercial lease is a financial commitment that will often last for multiple years. The terms of an agreement will need to be carefully reviewed to ensure that the rights of both parties will be protected. At Fox & Moghul, our attorneys work with commercial landlords and tenants to negotiate leases that will protect their interests, and we can also help clients determine the best ways to resolve any disputes related to these leases. Contact our Towson, MD commercial lease agreement lawyers at 301-409-5316 to arrange a consultation.