How to study a commercial lease ?

Definition

The commercial lease governs the relations between the lessor (owner of the walls) and the lessee (operator or tenant). This contract is an important element of the business.

Its minimum duration is 9 years.

How to study a commercial lease ?

Studying the commercial lease is an important part of selling occupied walls, since you buy walls with a tenant.

As part of your acquisition of occupied walls, you must also study the location and quality of the tenant, we deal with these cases in other articles.

The points of the commercial lease to be analyzed are:

Duration: it is necessary to understand the potential departure of the tenant vis-à-vis the end of the lease or a three-year period.

Rent: a determining factor impacting the return on your investment. Is it monthly, quarterly or yearly? Is it the market value? or is there a sub or a rent on it? is he paid regularly? are there any delinquencies?

In addition to the rent, one must also pay attention to other charges. Who pays the co-ownership charges, the property tax, the non-occupying owner insurance (PNO), ... etc?

The obligations of the lessor: what are they ?

Lessee's obligations: what are they ?

The distribution of work between the lessor and the lessee

The termination conditions must also be analyzed: by mutual agreement between the parties, at the end of each three-year period for the lessee, by application of a termination clause in the event of non-payment of rent or by legal process.

The conditions for the renewal of the lease

You have answered the fundamental questions allowing you to have a clear opinion on the balance of the commercial lease between lessor and lessee, so you can decide whether or not to acquire occupied walls.