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How does a commercial lease differ from its residential counterpart?

The realm of real estate transactions and disputes is broad and complex in Texas, and often involves huge amounts of money in given matters. We duly note that point on our website at the established law firm of Perry & Shields, LLP. Our practiced real estate attorneys serve diverse and valued clients from multiple offices spanning the state.

As we stress on our firm’s real estate practice page, matters surrounding leases are typically of vital importance to both property owners/lessors and lessees. Commercial leases especially -- as opposed to their residential counterparts -- can breed complexities and variances that invite close input from experienced legal counsel. Many business principals reasonably seek help from a proven real estate legal team when they are negotiating the terms of a commercial lease and contemplating execution of that important contract.

Experienced legal counsel will closely scrutinize all the material conditions of any commercial lease, and for good reasons. For starters, and as noted in one online overview of commercial lease agreements, such documents contain terms that “are negotiable and vary greatly from lease to lease.” That is typically not true with residential leases.

And there’s this, too: Both lessors and lessees often anticipate a significant amount of negotiation focused upon myriad key matters that span truly broad terrain. Those centrally include rental amount, the parameters surrounding any rental increase, lease term, security deposit specifics, lease assignment and subletting, and additional concerns.

Commercial lease negotiation and execution is unquestionably a big deal for both lessors and lessees. The studied involvement of experienced business law attorneys can help ensure that a client’s best interests are promoted and that potential downsides have been fully identified and legally addressed.

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