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April 24, 2018

What makes a good commercial lease in Colorado?

The following is a non-exhaustive list of elements and structure that a Colorado commercial lease should include. Please read my articles on retail, office, and industrial real estate leases for product-type specific tips.

Generally:

  • Effective Date of the Agreement

  • Parties (Landlord, Tenant), Property and Premises (the address, the square footage of the building, the square footage of the premises)

  • Term (How long the lease will last for)

  • Option to Extend (What is the process, if any, for renewing the term)

  • Base Rent (How much, dates  method of payment, commencement date)

  • Additional Rent (Gross Lease, NNN, or modified? If applicable; how much, what does it cover, commencement date).

  • Late Payments (When is rent late, consequences of late rent)

  • Security Deposit (How much, what does it cover and what is excluded, when will it be deposited, when will it be returned)

  • Intended Use (What is allowed, what is specifically prohibited)

  • Repairs and Maintenance of the Premises (What is the Landlord responsible for and What is the Tenant responsible for)

  • Parking

  • Real Estate Taxes (who is responsible)

  • Common Areas

  • Condition of the Premises and Representations

  • Inspection

  • Disclaimer on Warranty of Use

  • Signage

  • Vacancy and Abandonment

  • Legal Compliance

  • Pets and Animals

  • Storage and Trash

  • Hazardous Materials

  • Quiet Enjoyment

  • Landlord’s Right of Entry and Inspection

  • Rules and Regulations

  • Subletting or Assignment

  • Surrender of Premises

  • Fixtures

  • Partial Payments and Offset

  • Joint and Several Obligations of Tenant

  • Allowed Responsibilities / Duty to Repair

  • Tenant Improvements / Work Letters / Prior Landlord Consent

  • Compliance with Codes / Mechanics Liens

  • Snow Maintenance

  • Keys / Locks

  • Waste Removal

  • Default

  • Liability / Insurance

  • Destruction / Condemnation

  • Holdover

  • Guarantors

  • Right of First Refusal

  • Subordination/Estoppel/Attornment

  • Notices

  • Attorneys’ Fees

  • Governing Law

  • Amendments and Termination

  • Captions/Headings

  • Waivers

  • Heirs, Assigns, Successors

  • Credit Reports

  • ADA Compliance

  • Authority

Please Contact Me if you need assistance with reviewing, structuring, or drafting a retail, industrial, or office lease in Denver or elsewhere in Colorado.

Thanks for reading.