When a business owner rents space for a business, they will generally have to enter into a commercial lease with the landlord or owner of the building. Commercial leases can be complex as they are often for longer periods of time than residential leases and may include several clauses relating to the tenant’s business endeavors. A commercial lease in Arizona will often include:
- The type of property/space for rent
- Restrictive covenants relating to parking, signage, business hours, etc.
- The amount of rent owed and frequency of rent payments
- Duration of lease (fixed term or periodic renewal) and potential for lease renewal
- The type of business allowed on the premises
- Improvements done to the property by landlord and/or tenant
- Building maintenance
- Insurance costs
What disputes may arise between landlord and tenants?
Even when a lease seemingly covers every possible issue that could arise, it rarely does. As a result, commercial landlords and tenants often find themselves disagreeing over a variety of issues. Some of the most common commercial real estate/lease disputes in Arizona involve:
- Property damage rendering the property unleasable.
- Failure to pay rent owed under the lease or failure to pay rent on time.
- Failure to properly maintain the premises or complete repairs in a timely fashion, rendering the property unhabitable.
- Undue interference violating tenant’s rights under the covenant of quiet enjoyment.
- Desire to terminate lease early
- Modifications to the property not included in the lease
- Improper use of the premises
Commercial landlords and tenants may struggle to resolve these issues on their own without the help of experienced commercial real estate attorneys. If one party is found liable for breaching the lease agreement, they may owe damages to the other party for the financial harm caused by their breach.