Commercial Real-Estate Lease Clause
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A Commercial Real-Estate Lease Clause is a real-estate lease clause within a commercial lease agreement that specifies the terms, conditions, and obligations agreed upon by the landlord and tenant.
- Context:
- It can (typically) include a wide range of clauses, such as:
- Leased Premises Clause, detailing the specific space being leased and its use``【oaicite:11】``.
- Lease Term Clause, specifying the duration of the lease and any extension options``【oaicite:10】``.
- Rental Payment and Expenses Reimbursements Clause, outlining rent amounts, payment schedules, and any additional expenses the tenant is responsible for``【oaicite:9】``.
- Permissible Uses Clause, indicating acceptable uses of the leased premises and any prohibited activities``【oaicite:8】``.
- Co-Tenancy Clause, which may offer rental relief if occupancy falls below a certain level, particularly in retail leases``【oaicite:7】``.
- Events of Default and Rights to Cure Clause, defining what constitutes a lease violation and the remedies available``【oaicite:6】``.
- Tenant Improvement Allowance Clause, detailing financial contributions by the landlord towards customization of the leased space by the tenant``【oaicite:5】``.
- Assignment or Sublease Clause, addressing the tenant's ability to sublease or assign the lease to another party, subject to certain conditions``【oaicite:4】``.
- It can (often) significantly impact both the financial and operational aspects of leasing commercial real estate, emphasizing the importance of careful negotiation and understanding of each clause.
- ...
- It can (typically) include a wide range of clauses, such as:
- Example(s):
- A clause that allows for rent escalation based on increases in operating costs or inflation indices.,
- A provision granting audit rights to ensure accuracy in the allocation and billing of operating expenses.
- ...
- Counter-Example(s):
- A Residential Lease Clause, which may cover similar topics but is tailored to the unique context of residential property leases and governed by different legal standards.
- See: OLA Casualty Damage Article, Lease Renewal Clause, Rent Escalation Clause, Subleasing Clause.