My family has a smaller office space building in northern California (Healdsburg if anyone is looking for some office space!) and one of the long term tenants is moving out in a few months. I still have not reviewed other leases to see if they are structured as a gross or triple net but was wondering in anyone in here had links to some easy DIY templates for commercial leases or should I only attempt to do this through an attorney or professional property manager. I have some experience leasing my residential units but this seems like a different challenge I would like to help them out but want to make sure I keep them protected and represent them well. Any advice would be greatly appreciated!
commercial leases are a bit more complicated. I would negotiate a term sheet myself and then once major points are agreed to I would have an attorney draft the lease.
I agree. Commercial leases are much more specific to each tenant/building, but find yourself a good lawyer who will keep it short and sweet and use common language. The last thing you want is a 25 page lease that your tenant's lawyer is going to redline the sh*t out of. I recently landlord rep'd a deal where we got an 8 page lease for a 10 year term, I'll get his number for you.
Commercial leases are significantly more intricate and nuanced than residential. Work on a Letter of Intent and as @j koehne says, get some professional help. This is standard procedure in commercial leasing. Our clients tend to have their attorney work up a lease they are comfortable with and use it as a template moving forward for other new tenants. It's tough to have it make fiscal sense to go to an attorney every time you have a mom and pop tenant move out, but if you at least have a template, you can sort it out.
Eric Odum, Florida Investment Real Estate | 813.514.1070 | http://www.investfloridashow.com
Thanks for all the great feedback, I will take the advice and contact an attorney to get help drafting a leese!
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