The Parties: This paragraph generally sets forth the names,
addresses, and types of business entities of each party to the lease
agreement.
Landlord's Perspective
Landlord would likely want to ensure that the lease agreement lists the
proper responsible party to the lease. This may be a business entity,
an individual, or both. The party description may become important if
the event the landlord must enforce particular provisions of the lease
agreement to collect rent, enforce tenant's obligations, or to event
tenant.
Tenant's Perspective
Tenant would likely want to ensure that the lease agreement lists the
proper legal entity as the landlord. Additionally, if a business owner,
the tenant would likely want to list the proper legal entity as the
responsible party to the lease, rather giving a personal guarantee.
Use Of Premises: This paragraph states the permitted uses of the Premises.
Landlord's Perspective
Landlord would likely want the commercial space be used exclusively for a
specific purpose, such as for an office. Thus, even if zoning laws may
permit, the landlord would want to incorporate into the lease agreement
that the commercial space only be used for the landlord's intended
particular purpose, and not to be used for some other purpose.
Tenant's Perspective
Tenant would likely want the broadest possible use of the commercial
space not only for Tenant's own business operations, but also in the
event Tenant assigns the lease or sublets the commercial space to a
third party. Thus, the tenant would want to negotiate the "Use of
Premises" provision broadly.
Lease Term: This paragraph generally specifies the date on which
the lease term is expected to begin, the date on which the lease term
will actually begin, the date on which the lease term will end, and the
duration of the lease agreement.
Landlord's Perspective
Landlord would likely want to specify a limited term to tenant's
occupancy of the commercial space. Generally, this provision would
identify the date from which the rent would commence, and, thus, be
calculated.
Tenant's Perspective
For budgeting purposes, the tenant would likely want to identify the
date after which the tenant lease payments under the lease agreement
will commence. Additionally, this provision my protect tenant against
not having a interest in the commercial space for the desired period of
time, and eliminates any doubts as to the specific duration of tenancy.
Additional Rent (Net Lease): This paragraph generally incorporates
the net lease concept whereby tenant pays its proportionate share of
real estate taxes and building operating expenses.
Landlord's Perspective
Generally, this provision would likely protect the landlord from having
to absorb the costs of real estate taxes and/or the maintenance and
operation of the commercial space. These costs could presumably be
passed to the tenant on a prorated basis.
Tenant's Perspective
The provision may also protect the tenant from having to pay more than
its fair shore of the real estate taxes and maintenance and operation
expenses for the commercial space during the term of the lease
agreement. The provision may allow the tenant to audit landlord's
statement of expenses and to obtain credit for any overpayment.
Additionally, the provision may allow the tenant to object to certain
maintenance and operation expenses for the commercial space incurred by
the landlord.