What does a New York commercial lease agreement cost ? This is a common question for commercial property owners in New York who need a lease agreement. So let’s explore this question and review general information about commercial lease agreements and what they need to include.
How Much Does a New York Commercial Lease Agreement Cost?
The commercial lease agreement will lay out the rental terms and describe each party’s rights and obligations under the contract.
Commercial leases are important real estate documents that must be drafted correctly. The landlord is typically responsible for providing the lease to the tenant, so many landlords choose to hire a New York real estate lawyer to draft a commercial lease agreement.
A lease agreement is used to protect both parties and a real estate lawyer who is familiar with New York lease agreement laws. In addition, it will ensure that the contract includes all vital information necessary to be legally enforceable.
Based on ContractsCounsel's marketplace data, the average cost of a commercial lease agreement in New York is $735.00.
What's Typically Included in a New York Commercial Lease Agreement
Commercial lease agreements can be customized to fit the needs of the landlord and the tenant. These agreements are usually negotiable and will have varying terms and conditions. A basic New York commercial lease should cover the following essential information:
- Cost of rent. Rent is usually calculated based on the square footage and location of the commercial property. Commercial property in New York City will have higher rent than a property in a smaller town. The cost of rent is also determined by considering whether additional costs like utilities, taxes, insurance, and repairs are included or covered by the tenant.
- Rent increases. Unlike a residential lease agreement, it is common for commercial leases to include an annual percentage-based rent increase. Tenants can usually negotiate a cap on this increase.
- Security deposit. Landlords have the right to require a security deposit and put a security deposit agreement in place. Therefore, it is important to outline the deposit amount and how it will be returned upon termination of the lease agreement.
- Duration of the lease. Commercial lease agreements are usually longer than residential lease agreements. Therefore, if the tenant wants a shorter lease term, the landlord will typically charge a higher monthly rent.
- Additional expenses. The lease needs to state which party is responsible for the cost of utilities, taxes, repairs, and maintenance.
- Property description. A commercial lease needs to describe the property being rented in detail. For example, some buildings may have bathrooms or shared areas not covered under the lease agreement. A clear description of the property will allow the tenant to know which areas they can access.
- Signage. Commercial property is rented so the tenant can operate their business. A sign is essential for a business, so the lease agreement must include where and how signs can be displayed.
- Use clause. A Use Clause is added to a commercial lease agreement to define how tenants can use the property for their business. This clause protects the landlord and their property from damage and liability.
- Exclusivity clause. Commercial property is uncommon to be a complex that can house several businesses. An exclusivity clause or an exclusivity agreement protects the tenant because it prevents the landlord from renting space to any potential competitors to the tenant's business.
- Compliance with the Americans with Disabilities Act (ADA). All businesses in the United States that are open to the public and have more than fifteen employees must comply with the ADA. This means the property must be accessible to people with disabilities. A commercial lease will dictate which party is responsible for updating the property to meet these standards.
Examples of New York Commercial Lease Agreement Projects
Commercial Lease Agreement Drafting
Suppose a New York property owner needs a commercial lease. In that case, they should contact a commercial real estate lawyer familiar with New York lease agreement laws.
At the initial consultation, the lawyer will learn about the landlord, the property, and the type of lease the landlord wishes to use. Then the attorney can draft a lease agreement that fits the landlord's specifications.
A commercial lease agreement needs to be drafted correctly to protect the rights of both the landlord and the tenant. A knowledgeable real estate lawyer will know what clauses should be included in the lease to protect both parties and be legally enforceable under New York laws.
Commercial Lease Agreement Review
Before a tenant signs a commercial lease agreement, it is recommended that they have the agreement reviewed by their attorney. This is because lease agreements are almost always drafted by the landlord and tend to favor the landlord's interests more than the tenant's.
Suppose a tenant has their attorney review the lease. In that case, the attorney will suggest revisions and clauses that benefit and protect the tenant. The lawyer can even negotiate updated terms on the tenant’s behalf.
Drafting a New York Commercial Lease Agreement Cost
Drafting a commercial lease agreement can be complicated, and negotiations may require lawyers to draft several versions of a single lease.
According to ContractsCounsel's marketplace data, the average commercial lease agreement drafting costs in New York are $775.00.
Reviewing a New York Commercial Lease Agreement Cost
If tenants hire an attorney to review their lease agreement, they will be responsible for the legal fees. However, the lawyer will use their time and expertise to ensure the contract is fair and the tenant is protected.
ContractsCounsel's marketplace data shows the average commercial lease review costs in New York to be $721.67.
How Do New York Lawyers Charge for a Commercial Lease?
Hourly Rates for a Commercial Lease
When a lawyer uses an hourly rate fee agreement, they bill their client for the number of hours a case or project takes at a set hourly rate. The hourly rate should be communicated to the client before any work is done.
The lawyer can also bill their employees' work as paralegals or office staff do.
The marketplace data for ContractsCounsel shows that the average hourly rate for a New York real estate lawyer ranges from $200 - $350 per hour.
Flat Fee Rates for a Commercial Lease
When using a flat fee rate structure, the lawyer will assess the task and provide the client a flat fee to complete the job. Clients like this fee arrangement because they know exactly what they need to budget for legal fees.
ContractsCounsel's marketplace data shows that the average flat fee rate for a commercial lease agreement in New York costs $735.00.
Get Help with a New York Commercial Lease Agreement
Do you need help with a New York commercial lease agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from real estate lawyers who are licensed to practice law in New York. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.