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What are some important clauses found in commercial leases?

Here are some of the most important clauses in commercial lease agreements that tenants should know about: Term. Description of Premises Clause. Rent Escalation Clause. Use Clauses. Improvements and Alterations Clause. Insurance Clause. Renewal Clause.

What is an expansion option?

An expansion option gives a companys management the right (but not the obligation) to pursue business opportunities, such as expanding a companys offices or purchasing equipment for a price below market value. If economic conditions are good, a company will often exercise an expansion option.

What does expansion mean in real estate?

Expansion: In the expansion phase, the real estate market is completely recovered from the recession phase and is very strong. When the real estate market expands, vacancy is low, rent rates are high (and rising), property values are high, and new construction is typical to see.

What are the 3 most important clauses you should look for in a lease?

10 Important Rental Lease Clauses to Include Rent Liability. This clause states that tenants are jointly and severally liable for the full rent amount. Severability Clause. Access to Premises. Use of Premises. Holding Over. Sublet Rules. Disturbance Clause. Lessee to Maintain.

What is a use clause?

A use clause can be either a restriction on how you do businesstelling you what you cant door a prescription, telling you what you must do. In general, youll want to avoid strict restrictions on your use of the rented space, so count yourself lucky if the landlords lease doesnt include a use clause.

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