Common commercial real estate mistakes

by | Apr 13, 2021 | Firm News |

Securing the right location is vital for businesses that serve consumers directly, such as restaurants and retailers, and for those that must maintain professional office space. But commercial leasing transactions are as likely as anything to have complications such as:

Incorrect leasing language

Sometimes leases contain terms that are damaging to a specific business. Sometimes leases may misidentify the parties. Largely, these are mutual mistakes – contract language mistakes made by both parties – and a judge may allow the parties to amend contract language under certain circumstances.

Personality clashes between tenant and property owner

A landlord-tenant relationship is still a relationship. If the personalities clash in ways that create too much conflict, it can definitely cause business difficulties. Personality clashes require interpersonal effort between the sides and patience. Most times, parties can overcome clashes like these by understanding their communication styles.

Due diligence failures

Failure to do your research on a property is the most difficult type of mistake to come back from. In contract law, it is assumed that a person understands the terms and the scope of their contracts. If you agree to a lease and then later find out that the property or the tenant is a bad fit for any reason, that is on you.

How to fix a mistake

The first thing to do when you find yourself in a difficult legal position with your leasing agreement is to speak with a skilled commercial property attorney. They may be able to find some way to mitigate your issues and offer you some way to move forward.