For most small businesses, the lease is the largest financial commitment they will ever make, often worth hundreds of thousands of dollars over its term. Commercial leases in New York are drafted by landlords’ lawyers and heavily favor the landlord. Unlike residential tenants, commercial tenants have few protections beyond what the lease itself says. The time to negotiate is before you sign.
What we look for
- Rent and escalations. Base rent, annual increases, and pass-throughs of real estate taxes, operating expenses and common area charges that can raise your real cost well above the headline rent.
- Personal guaranty. Most landlords require the owner to guarantee the lease personally. We negotiate limits, such as a “good guy” guaranty that ends once you vacate properly, or a cap on the amount guaranteed.
- Use clause. Making sure the lease permits your business, including services you may add later.
- Assignment and subletting. If you ever want to sell your business, the buyer will need to take over the lease. Restrictive assignment clauses can make your business nearly impossible to sell.
- Term and renewal options. Enough time to recover your build-out investment, with the right to renew on known terms.
- Build-out and landlord work. Who pays for construction, permits and delays, and when rent actually begins.
- Repairs and compliance. Responsibility for HVAC, plumbing, the storefront, and ADA accessibility requirements, which are a frequent source of lawsuits against tenants and landlords alike.
- Default and security deposit. Cure periods, how the deposit is held, and what the landlord can do if you fall behind.
Who we represent
We represent tenants opening or relocating a business, buyers taking over a lease as part of a business acquisition, and landlords who want a clear, enforceable lease. When a lease dispute turns into litigation, our real estate litigation team is ready to step in.