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LegalCornerTM - Commercial Leases F.A.Q.'s

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Q.Are commercial lease terms negotiable?

A.Yes, every term in a commercial lease is negotiable. Neither tenants nor landlords are limited to pre-printed forms. In fact, prospective tenants can cross-out words, and even whole paragraphs and pages. Most landlords will initially present a very one-sided pro-landlord lease with many terms that are not in the business owner's best interest, but most landlords are almost always willing to make at least some concessions. The prospective tenant's bargaining power, however, will often depend on the local rental market. While rent is typically not negotiable, the landlord may agree to limit annual rent increases, to pay for, or put a cap on, utilities, repairs, taxes and/or insurance, or to pay for necessary improvements to the to be leased space prior to move-in.

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