Commercial lease

[Bryce Cutler]

I have a residential lease that works well for me, but I have just purchased my first mixed use property and want to get a good commercial lease. What things do I need to include for a commercial tenant that I haven't had for a residential tenant?

Thanks,

Bryce

[Young Lee]

Agreed on the personal guaranty - the lease and the value of the property (as an investment) becomes much stronger with it.  

Also, if your commercial Tenant(s) are reluctant to sign a "full" personal guaranty, perhaps you could use a personal guaranty with a fixed term (e.g. 6 months to a year's worth of rent upon termination), a personal guaranty with a "floating" term (e.g. 6 months from lease termination) or a "Good guy guaranty" (where the Tenant does what a "good guy" would normally do instead of disappearing on the Landlord overnight - perhaps used predominantly in the NY area?)

What types of commercial spaces are currently at the property?  I'm assuming retail at the ground level and perhaps some office space on the second floor?