There Is No ‘Standard Commercial Real Estate Form’
What’s a ‘Standard Commercial Real Estate Form’?
I recently got a call from a colleague asking for a ‘commercial lease form’.
An unrepresented party wanted to ‘familiarize themself’ with a commercial lease so they could confidently approach a landlord.
“There just didn’t seem to be one in Zipforms . . . ”
You don’t say.
But I will . . .
. . . danger, Will Robinson.
There is NO STANDARD commercial lease – they are tailored for the property type and specific deal.
Even the ‘industry standard’ WINAIR forms include pages of addenda for each scenario in each state . . . and that’s before they are overwritten for the deal.
Although our State does have a Commercial Purchase Contract, corporations quite often will insist on using their own Purchase and Sale Agreements, Purchase Contract, Agreement Of Sale, call it what you will in your region.
National tenants often use their own leases. I had a new client think it curious that a tenant was drawing their own lease. This is not at all unusual – the one with the lease has the most leverage over the terms they want!
Landlords know it, and savvy commercial tenants do too.
That’s why they have their attorneys draw them!
And that’s why, as an Arizona Commercial Real Estate Broker . . .
I include in our LOIs that I will provide the paperwork upon acceptance of the Letter.
It doesn’t always end up that way, but whenever possible, we want the deal to include language as advantageous to our clients as possible.
And stop me if you think you’ve heard this one before – self representation in a CRE deal is great news–for the other party.
Either the landlord will know something you don’t . . . they will have their own broker . . . or they will know less than you, and there will be enough holes in the paperwork to drive a Hummer through so no one is protected. Be careful with stuff like this.
Even non-real estate attorneys know to involve a broker.
We have had attorneys consult with us on important items in a lease, because they are smart enough to know what they do not know.
Different game, different rules, different protections (and lack thereof!)
If you don’t want a broker, hire an experienced commercial real estate attorney to make sure you are protected.
Why on earth wouldn’t you want a broker, though?
How can we help you?