A commercial lease is a negotiable contract between a landlord and a tenant who owns a business. A commercial lease is used when a person rents a space to operate his or her business, whether this is a retail store, restaurant, or warehouse. It is legally binding and enforceable, with the contractual obligations between landlord and tenant outlined in the Texas Property Code. It includes the restrictions, obligations, and rights regarding the use and maintenance of the property. If either the landlord or tenant is found to be in breach of the commercial lease, Texas commercial lease laws provide for remedies and/or consequences.
Some Texas companies own the buildings that they occupy; but more typically, the commercial property is leased from another party. Texas commercial real estate contracts are complex; commercial leases, for example, come in several different forms from which to choose depending on the type of business to be conducted and other business needs. Each specific form lays out customized terms, such as whether the tenant is contractually bound to pay taxes, insurance, and/or maintenance fees on top of rent.
Most commercial leases are effective for a period of years, though some may run month to month, depending on the needs of the tenant. This is typically one of the first terms outlined in a lease contract. Other items addressed include things such as rent amount, subletting, maintenance obligations, tenant improvements, early lease termination, defaulting on the contract, etc.
Sometimes, disputes arise when it comes to commercial leases in Texas; such disputes are not uncommon. Some of the most common disputes occur due to the tenant’s failure to pay rent on time or in full, disagreements regarding maintenance/repairs of the property, lease termination, and more. Many of these can lead to litigation, so it is important to have a qualified commercial real estate litigation attorney on your business team to competently address the issues directly and advise you as to the best way to move forward.
Texas Commercial Lease Laws. Your Texas commercial real estate purchase contract or lease contract is an important legal document that requires key considerations from preparing, negotiating, and drafting the contract to agreeing to the terms of and signing the contract. Think about getting professional legal guidance and advice before you make a commercial real estate purchase or before you sign a commercial lease. In the Austin, Texas area, reach out to Attorney Brad Reeves of Reeves Law, PLLC for assistance. Mr. Reeves and his team at Reeves Law can help you to navigate the complicated legalities of commercial real estate transactions, from purchases to leases. Contact Reeves Law, PLLC to discuss your specific situation and needs today.
Texas Property Code, Title 8, Chapter 93https://statutes.capitol.texas.gov/Docs/PR/pdf/PR.93.pdf
Your First Commercial Lease: How to Prepare and What to Expecthttps://www.businessnewsdaily.com/7619-negotiate-commercial-lease.html
Commercial Real Estate Leases: Understanding Gross, Double Net, and Triple Net Leaseshttps://www.commercialrealestate.loans/commercial-real-estate-glossary/gross-double-net-triple-net-lease/
5 Different Types Of Commercial Real Estate Leases, Explainedhttps://www.squarefoot.com/leasopedia/different-types-of-commercial-leases/
The Commercial Lease: What You Should Knowhttps://www.nolo.com/legal-encyclopedia/commercial-lease-basics-29934.html