Many businesses enter into commercial leasing arrangements without properly considering the actual terms of the lease that they are signing.
Many tenants proceed on the assumption that all leases are “standard” and will assume that their interests are adequately protected.
On the other hand Landlords will sometimes find a lease online and assume that it will cover issues particular to their property.
The usual result of this is that a party will often find themselves in a very unfavourable situation. For instance, a tenant may find themselves having to do unforseen and expensive replacement of equipment, fixtures or fittings either during the term or at the expiry of the Lease.
They may also be subject to very strict timeframes and conditions around exercising options, assigning or subletting or be subject to very unfavourable rental review clauses.
For Landlord’s, if they do not have appropriate clauses in their leases, they may find themselves in a position where a Lessee abandons the Premises leaving behind goods which the Landlord does not have a right to treat those goods as abandoned or otherwise deal with them, leaving the Landlord in a position where it cannot just quickly deal with the goods and where it may even owe obligations to the Tenant in respect of those goods.
In all of these circumstances, those problems can be avoided by proper review, negotiation and drafting of the terms of the Lease.
Hillhouse Burrough McKeown has broad experience with commercial leases across all types of premises acting for both landlords and tenants.