Texas Commercial Lease Agreement Cost

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What does a Texas commercial lease agreement cost ? This is a common question for commercial property owners in Texas 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 Texas Commercial Lease Agreement Cost?

A commercial lease agreement is a legally binding contract between a landlord and tenant who owns a business. The agreement allows the tenant to occupy the landlord’s property to run their business.

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. For example, in Texas, the Texas Property Code will impose specific requirements on tenants and landlords if their lease agreement doesn’t have customized provisions.

For this reason, landlords usually choose to hire a Texas real estate lawyer to draft a commercial lease agreement. An attorney familiar with lease agreements will be able to draft a contract that protects both parties and adheres to all Texas Property Code requirements.

Based on ContractsCounsel's marketplace data, the average cost of a commercial lease agreement in Texas is $625.00.

What's Typically Included in a Texas Commercial Lease Agreement

Commercial lease agreements can be customized and vary depending on the commercial lease used. A basic Texas commercial lease agreement should cover the following essential information:

  • Cost of rent. Rent is usually calculated based on three factors: the square footage of the space, the location, and whether additional expenses like utilities, taxes, insurance, and repairs are included or covered by the tenant.
  • Rent increases. Unlike a residential lease, it is common for a commercial lease to include an annual percentage-based rent increase. Tenants can usually negotiate a cap on this increase.
  • Security deposit. Under Texas law, landlords have the right to require a security deposit and put a security deposit agreement in place; however, they must refund the deposit within 60 days of the tenant moving out and providing a forwarding address. In addition, tenants cannot legally skip out on the last month’s rent in exchange for the security deposit.
  • 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 agreement needs to clearly state which type of lease is being used and 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.
  • 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. If a commercial property is in a complex that can house several businesses, an exclusivity clause or an exclusivity agreement 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 to be accessible to people with disabilities. A commercial lease will dictate which party is responsible for updating the property to meet these standards.
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Examples of Texas Commercial Lease Agreement Projects

Commercial Lease Agreement Drafting

Many commercial property owners in Texas seek out the services of a Texas real estate agent to draft a commercial lease agreement. A lawyer will help the landlord choose the type of commercial lease best suits their property.

Some common types of commercial leases include:

  • Net Lease. The tenant pays property taxes in addition to the monthly rent.
  • Double Net Lease. On top of monthly rent, the tenant pays taxes and insurance.
  • Triple Net Lease. A triple net lease is where a tenant pays for the taxes, insurance, and maintenance in addition to the rent.
  • Percentage Lease. A percentage lease is where the tenant pays a base rent amount and a set percentage of their sales and profits.
  • Fully Serviced Lease. Sometimes called a gross lease, the tenant pays just a monthly rent, including all expenses, utilities, and other services.

Once the landlord and attorney decide on the lease type, the attorney will draft a customized agreement.

Commercial Lease Agreement Review

When tenants sign a commercial lease agreement, they take on a big responsibility. A standard commercial lease usually has a duration of three years, so it is important that the tenant is happy with the lease terms.

Many tenants hire their attorneys to review the lease agreement before signing it. The attorney will review the contract with the tenant’s interests in mind to ensure the contract is fair and follows all Texas laws.

Drafting a Texas Commercial Lease Agreement Cost

Drafting a commercial lease agreement can be complicated, and it will take the time and legal expertise of an experienced real estate lawyer.

According to ContractsCounsel's marketplace data, Texas's average commercial lease agreement drafting costs are $775.00.

Reviewing a New York Commercial Lease Agreement Cost

Reviewing commercial leases will also incur legal fees. However, the attorney will take their time and specialized knowledge of Texas real estate law to ensure the contract is fair and legally binding.

ContractsCounsel's marketplace data shows the average commercial lease review costs in Texas to be $500.00.

How Do Texas Lawyers Charge for a Commercial Lease?

Hourly Rates for a Commercial Lease

Many Texas real estate lawyers, will charge their clients using an hourly rate fee agreement. This means the lawyer will bill their client for the number of hours a case or project takes at a set hourly rate.

This fee structure ensures that lawyers are compensated for all the time spent working on a case, especially if the case or task takes longer than expected.

When drafting a commercial lease, it is common for the parties to negotiate terms. As a result, the lawyer may spend extra time rewriting the contract. An hourly rate ensures that they ate paid for this extra time.

The marketplace data for ContractsCounsel shows the average hourly rate for a Texas real estate lawyer ranges from $200 - $400 per hour.

Flat Fee Rates for a Commercial Lease

If a lawyer uses a flat fee rate structure, they will assess the proposed job and then provide the client with a flat fee to complete the project. This fee structure is more commonly used for projects with a definitive end.

The client must understand what services are included in a flat rate fee. For example, a lawyer may quote a flat rate to review a contract. However, that fee may not include negotiations or meetings.

ContractsCounsel's marketplace data shows that the average flat fee rate for a commercial lease agreement in Texas costs $625.00.

Get Help with a Texas Commercial Lease Agreement

Do you need help with a Texas 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 Texas. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

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