Today’s commercial leases are sophisticated legal documents. Whether you’re a commercial landlord or tenant, you’ll probably need help interpreting, enforcing, and negotiating a lease at some point. We’re here to help. Our real estate lawyers at The Enochs Law Group have extensive experience advising parties to commercial contracts.
If you’re unsure what your legal rights are as either a landlord or tenant, keep reading. You can also schedule a consultation with one of our attorneys to get personalized legal advice right away.
San Diego’s 3 Most Common Forms of Commercial Leases
A commercial lease is a contract, so it’s essential that you clearly understand its terms and conditions. In California, there are three common forms of commercial leases:
- Gross Lease: The tenant pays rent, and the landlord pays for property-related expenses such as repairs and property taxes.
- Triple Net (NNN) Lease: The tenant pays rent and must cover property-related expenses.
- Modified Gross Lease: The tenant and the landlord each pay a portion of the property-related expenses.
Commercial tenants must pay their rent in full. If a tenant consistently fails to pay rent or only makes partial payments, the landlord may evict them.
Also, unless your lease contains a specific protection, commercial leases are not rent-controlled. So, the landlord typically has the right to increase a tenant’s rent as long as the landlord complies with the existing lease agreement.
Enforcing a Commercial Lease
Sometimes, landlords and tenants find themselves in contentious lease disputes. These disputes may come up due to vague or poorly written lease agreements. Other times, a party violates a legally binding lease agreement and harms the other party.
In these situations, our real estate lawyers work closely with our clients to identify their goals, assess their alternatives, and build comprehensive legal strategies that reflect their priorities.
Sometimes, this process requires litigation. Other times, we can quickly resolve commercial lease disputes privately and out of court. Regardless of your situation, our aggressive litigators will help you build a practical solution that protects your interests.
We Build Relationships on Trust and Respect
We Approach Every Case With a Business Mindset
While you may be familiar with BATNA (best alternative to a negotiated agreement), it’s a technique many lawyers don’t know about or understand. At The Enochs Law Group, we believe our clients deserve pragmatic, informed advice, so we apply proven business principles like BATNA to litigation.
During negotiations, identifying your BATNA can lead to better and more efficient outcomes. However, before you can define a BATNA, you first need to:
- Set your priorities and objectives
- Identify all your data and metric-based alternatives
- Evaluate the advantages and disadvantages of your options and place the options in a hierarchy
- Build a secondary course of action in case your negotiations fail
- Calculate the least favorable outcome you’re willing to accept
If you think this doesn’t sound like a typical approach to real estate litigation, you’re right. We don’t create legal strategies based on tradition. Instead, we use data, creativity, and critical thinking to give our clients an edge.
Legal Resources and Information
Read our blog to learn more about legal issues that interest you and stay up to date on the latest developments in California real estate and business law.
The Wisdom of Purchasing a Property in Foreclosure in California
If you are considering purchasing a residential property in California that is in foreclosure, you should be aware that you are about to engage in heavily regulated activity. Those of you that know me are aware that I am no fan of burdensome regulation. But, if you are seeking to invest in residential properties, you…
Read MoreInvesting in Real Estate? Don’t Use a Suspended LLC or Corporation
If you are investing in real estate through a suspended LLC or corporation, this is a bad idea. Imagine that you have identified a fantastic real estate investment opportunity, and you have the purchase of this real estate under contract. However, before you close escrow, the seller develops sellers’ remorse. The seller tells you that unless you substantially…
Read MoreCalifornia’s New Rent Control Law
California legislators just passed a historic rent control bill, becoming one of a growing list of states to pass statewide rent control and other tenant protections. The bill is expected to be signed into law by Governor Gavin Newsom, who supported its passage through the legislature. Read on for details about the new law, and…
Read MoreNew Real Estate Fraud Charges Against Woman Already Accused of Multi-Million Dollar Scam Targeting Elderly Californians
Real estate ownership and management can be complicated, particularly for elderly Americans. California has several laws in place that specifically protect the elderly in property transactions in order to prevent unscrupulous parties from taking advantage by means of fraud or undue influence. A recent criminal fraud case out of Los Angeles illustrates how a deceitful…
Read MoreIs a Bridge Loan a Good Idea?
Flipping real estate, especially if you’re a relatively new investor, may entail purchasing a new property before the sale of a previous investment is complete. This may mean that funds critical to a new purchase are tied up but will soon become available. In these cases, some real estate investors opt to take out bridge…
Read MoreCalifornia Passes New Statutory CEQA Exemption
As readers of this blog know, the regulatory requirements imposed by the California Environmental Quality Act (CEQA) can increase the cost, time, and overall difficulty of real estate development. Any new exemption or other limitation on CEQA’s purview is a boon for real estate developers looking to limit cost. The California Legislature recently enacted a…
Read More