The Basics of a Commercial Lease Agreement in Oklahoma
Are you planning to take your business to the next level? Perhaps a new branch or a bigger space that will let you serve your clients even better? Well, your lawyers will recommend finding the best lease around and fast. As they review the terms of the lease, you should think about how that lease and the proposed location best meets your needs: not only today but in the next few years. Even without a lawyer or a commercial real estate broker to help you check the right boxes ensuring that yours is a favorable lease, you should always start and run your entire search with a thorough evaluation of your needs, against the features of the lease. A commercial lease agreement that looks fair now might be unfavorable for your business a few years later.
A commercial lease agreement in Oklahoma is a legally binding document drawn between a property owner or landlord and an entity or individual planning to use the named commercial property for business. In exchange for the rights to use the commercial property, the landlord receives rent, and they might have to pay for the property’s expenses too. This contract is also called a commercial property lease agreement or a business lease agreement.
Therefore, before you sign your lease agreement, make sure that the terms listed therein will encourage business growth. Some of the terms to review and negotiate in an Oklahoma commercial lease agreement include:
You shouldn’t take a landlord’s or property manager’s word without verifying their actual names, as well as the property ownership details. As you start the negotiation process, ensure that the document has your legal name and address, as well as the landlord’s. If a third party represents the landlord, they should indicate their position as the representative in the lease.
As you carry our due diligence to make sure that everything is in order on your end, the landlord will also run their checks on you. If you are looking for space for your company, you will be reviewed by the Secretary of State’s Business Department
Description and The Permitted Uses of The Premise
When scouting potential business locations and before signing the lease, you need to check out all those empty spaces to determine their suitability. You also need to get the zoning approval documents to ensure that you can actually run that business in the location. Once you have these details and are certain about the suitability of the space, enter the exact dimensions for the space – interior and exterior. You may ask for architectural drawings to make sure that you have the accurate dimensions, and also to confirm that the premise has all the necessary amenities.
The Description of The Leased Property Should also Include the Legal Name and Address of The Premise.
Note that you have to get the landlord’s approval to run the business especially if your line of business is legal but misunderstood.
For how long would you like to lease the property? Do you need a lease that has the option to renew or not? Would you rather a short-term lease or a long-term lease?
Depending on your business needs, you may end up with a fixed-term or a periodic lease. With the fixed-term lease, the lease’s termination date is known from the beginning, and the terms of the lease will not change unless it's well documented in the lease that changes can be made.
On the other hand, the periodic lease can be renewed, and it has no end date. With this lease, there may be a provision for change of terms or increase in rent, but the change is only effectuated after notice is given. Also, either party to a periodic lease can terminate it after giving property notice.
Rent and Expenses - Types of Leases in Oklahoma
Leases also vary depending on how much you will pay in rent and other expenses. The state recognizes the following leases.”
Gross Lease: here, a tenant pays a fixed monthly amount that is exclusive of property maintenance expenses.
Triple Net Lease: in this arrangement, a tenant is responsible for the base rent as well as well as all other expenses including the property taxes, CAM (Common area maintenance), insurance costs, utilities, janitorial services, and all other expenses.
Modified Gross Lease: this lease is a hybrid of the net lease and the gross lease. The tenant pays the base rent and a shared portion of the operating/ property expenses.
No standard determines how much landlords request as a security deposit. But, regardless of the agreed amount, make sure the terms for refunding the money are favorable.
Other aspects of the lease to be reviewed include those relating to lease renewals, ADA compliance, tenant improvement, litigation, termination/ relocation rights, and notices.
Once you have all these aspects in order, then you can sign the lease.
To get started with the business lease agreement in Tulsa, Norman, Oklahoma City, Lawton, Edmond, Enid or any other city in Oklahoma, download our free commercial lease agreement form now.