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Location, Location, Location: Representing Tenants in Commercial Lease Negotiations

When you represent a “brick and mortar” business, you will sooner or later be called upon to review and negotiate the client’s lease of commercial space in a shopping center or office building. While your client generally doesn’t have a lot of negotiating leverage, there are many things you can negotiate that will prevent your client from being treated unfairly. In this fast-paced, entertaining presentation, a leading business lawyer who has represented over 15,000 clients in his 45-year career will walk through a typical commercial lease clause by clause and provide guidance on drafting and negotiating key provisions.

Topics to be covered include:

The different types of commercial leases
Preparing and negotiating a lease proposal or “letter of intent” for your client
How to negotiate commencement dates, landlord’s and tenant’s buildouts, rent-free use periods, and tenant improvement allowances (TIAs)

Duration of this webinar: 60 minutes

Originally broadcast: September 4, 2025 11:00 AM PT

Webinar Highlights

This webinar is divided into section summaries, which you can scan for key points and then dive into the sections that interest you the most.

00:00 Introduction

Cliff Ennico, an expert in legal and tax issues for entrepreneurs, will discuss representing tenants in commercial lease negotiations. Cliff begins by explaining the significance of understanding commercial leases for attorneys representing small businesses. He outlines the different types of commercial leases, such as retail and office leases. Cliff discusses the complexities of office leases, particularly in large office towers with multiple subleases.

06:20 What to Expect From Landlords

Cliff highlights the challenges tenants face in negotiations, especially when they have little bargaining power. He shares an anecdote about AI's role in lease negotiations, illustrating the growing reliance on technology by landlords. He explains the importance of understanding the landlord's perspective and the financial pressures they face. Cliff differentiates between commercial landlords and mom-and-pop landlords, noting their varying levels of flexibility and predictability. He emphasizes the need for tenant attorneys to negotiate lease terms that protect their clients' interests.

18:00 Negotiating Lease Terms

Cliff outlines the lease negotiation process, starting with the letter of intent, which covers key economic terms. He stresses the importance of attorney involvement at the letter of intent stage to ensure favorable terms for the client. Cliff explains the significance of accurately describing the leased premises and the implications of triple net leases. He advises on the inclusion of maps or diagrams in leases to prevent misunderstandings about the leased space. Cliff discusses the importance of specifying commencement dates and rent-free use periods to accommodate tenant build-outs. He highlights the need for clear terms regarding tenant improvement allowances and the potential for early lease termination.

43:45 Triple Net Leases and Expenses

Cliff delves into the specifics of triple net leases, emphasizing the need to understand property tax assessments and common area charges. He advises on negotiating terms that prevent tenants from overpaying for expenses and ensuring transparency in cost calculations. Cliff discusses the importance of clear security deposit terms and the conditions for its return after lease termination. He highlights the need for separate metering of utilities to avoid unfair cost distribution among tenants. Cliff stresses the importance of HVAC maintenance clauses to ensure timely repairs and prevent business disruptions.

58:10 Permitted Use and Non-Compete Clauses

Cliff emphasizes the importance of broad permitted use clauses to accommodate changes in a franchise's business model. He advises on negotiating exclusivity clauses to prevent competition within the same shopping center. Cliff highlights the need to review existing non-compete agreements to avoid conflicts with other tenants. He discusses the implications of hours of operation clauses and the potential impact on a tenant's business. Cliff advises on negotiating non-compete provisions that protect the tenant's interests.

Please note this AI-generated summary provides a general overview of the webinar but may not capture all details, nuances, or the exact words of the speaker. For complete accuracy, please refer to the original webinar recording.

Speaker

Cliff Ennico Attorney
Law Office of Clifford R. Ennico

CLIFFORD R. ENNICO (www.cliffennico.com) is widely considered to be one of America's leading experts on the legal and tax problems facing entrepreneurs and privately-owned businesses. Read More ›

Continuing Legal Education (CLE) Credits

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California CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: June 30, 2026

New Jersey CLE

Status: Approved

Credits: 1.20 General

Earn Credit Until: September 16, 2026

North Carolina CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: February 28, 2026

Texas CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: August 31, 2026

This presentation is approved for one hour of General CLE credit in California, and North Carolina. This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.20 hours of total CLE credit. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.00 credit hours.

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