Lease Terms in Texas

An Area of Practice

considerations of leases

The standard commercial lease will cover a number of topics important to both the Landlord and Tenant. When reviewing a lease a simple approach is asking about the rights, duties and liabilities of each party. This will  have you negotiate a document that suits your needs.

There are several types of leases used in the market place:

• Office Lease with Tenant paying over a base amount for the common area expenses

• Office Lease with Tenant paying a percentage of the common area expenses

• Restaurant or Retail Lease with the Tenant paying base rent compared to a percentage of sales along with the common  area expenses

• Restaurant or Retail Lease with the Tenant paying base rent and additional rent for common area expenses, insurance and taxes

• Gross Leases were popular in the past but due to property tax and operating cost changing annually Landlord’s prepare net Lease

Common Topics Covered in a Commercial Lease

• Defined Terms

• Lease and Term

• Rent and Security Deposit

• Taxes

• Insurance and Indemnity

• Use of Premises

• Property Condition, Maintenance Repairs and Alterations

• Damage and Destruction

• Condemnation

• Assignment and Subletting

• Default and Remedies

• Landlord's Contractual Lien

• Protection of Lenders

• Environmental Representations and Indemnity

• Professional Service Fees

• Miscellaneous

• Additional Provisions

• Construction of Improvements

• Expense Reimbursement

• Renewal Options

• Annual Base Rent Schedules

• Percentage Lease/ Gross Sales

• Right of First Refusal for Additional Space

• Rules and Regulations

• Guaranty

• Surface Rights v. Mineral Rights

• Information about Brokerage Services

It is highly advisable to consult an attorney when exploring lease terms as a landlord or as a commercial tent.