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Colorado Commercial Lease

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The Colorado commercial lease agreement is a contract between a landlord and a tenant that outlines the terms and conditions associated with renting commercial spaces. Commercial lease agreements are in written form and once signed by both parties, become a legally binding contract that is enforceable in court.

Commercial lease agreements generally last 1 to 5 years. The time period extends if both parties consent to the terms. Therefore, accepting adverse provisions specified in a commercial lease can impact a corporation, especially a new business. Hence, tenants must always review the lease terms carefully before signing the agreement.

Key Points You Must Know About Colorado Commercial Lease

A tenant must consider these key points before entering a commercial lease agreement in Colorado.

  • Determine the Capability of the Property Manager

    Commercial properties are costly investments and usually have multiple landlords or are held by a lawful body, such as a corporation. Moreover, property owners hire a property manager who can manage all the work involved in maintaining and operating a building: arranging maintenance, signing leases, notifying tenants of lease violations, collecting rent, etc. So dealing straight with the property owner can be impractical sometimes.

    Hence tenants must always determine the powers a manager holds regarding the commercial property as it can prove beneficial for the overall success of the lease.

  • Understand That Authorized Use Generally Means Only Use

    Lease contracts incorporate a “permitted use” provision, that indicates what activities the lessee can perform on the commercial property. Anything beyond the list of acceptable uses is likely restricted.

    However, as permitted use provisions impose restrictions, it can greatly impact how tenants run their businesses on commercial property. Thus, if the lessee wants to grow the company, they must always check the existence of this clause.

  • Know When and How a Property Rent Will Increase

    Given the extended duration of most commercial leases in Colorado, many leases will comprise prerequisites that escalate the rent payment. For example, a lease may determine that rent will rise yearly or will rise only every ten years. Understanding how frequently property rent will increase can help the tenant to plan for the rent upsurge and incorporate it into the budget.

  • Know That the Modifications Are Necessary

    Besides the improvements made at the start of a commercial lease, a lessee may want to make changes during the lease period. A commercial lease agreement should also determine how the lessee may make modifications during the lease. These changes need to be authorized by an owner, especially if they impact a facility permanently.

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Conclusion

Colorado commercial property regulations cover landlord-tenant associations, insurance, disclosures, etc., that affects both owners and lessees. So, by complying with the different prerequisites, you can make clear anticipations and reduce conflict.

Get in touch with our expert attorneys at ContractsCounsel to check the regional commercial lease laws that may apply only to your location.

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Laurie R. on ContractsCounsel
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Member Since:
June 19, 2023

Laurie R.

Real Estate and Business Attorney
Free Consultation
Dallas, Texas
23 Yrs Experience
Licensed in CO
University of Colorado

Business-minded, analytical and detail-oriented attorney with broad experience in real estate and corporate law, with an emphasis on retail leasing, sales and acquisitions and real estate finance. Extensive experience in drafting complex commercial contracts, including purchase and sale contracts for businesses in a wide variety of industries. Also experienced in corporate formation and governance, mergers and acquisitions, employment and franchise law. Admitted to practice in Colorado since 2001, Bar No. 33427.

David U. on ContractsCounsel
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June 22, 2023

David U.

Attorney
Free Consultation
CO, AZ, OK
24 Yrs Experience
Licensed in AZ, CO
The University of Oklahoma College of Law

I help clients with: buying and selling commercial properties including multi-family and office projects, subdivisions, retail shopping centers; and negotiating leases for retail and office landlords, retail tenants and office tenants. Over 23 years I've honed my skills by running deals at an Amlaw-100 firm, an elite real estate boutique in Aspen, Colorado and a few highly regarded national firms based in Denver, Colorado, before starting my own solo practice in 2016. Since 2016 I've been helping my clients with real estate and business deals. I'm a commercial real estate and business expert with a passion for helping clients forge successful ventures in an efficient and understandable manner.

Suzanne E. on ContractsCounsel
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July 2, 2023

Suzanne E.

Attorney/Business Advisor
Free Consultation
80304
30 Yrs Experience
Licensed in CO
Seattle University

I have been an attorney for 30 years. I am a Colorado native with many years in Alaska. I have a Bachelors in Biology, Chemistry and French, JD from Seattle University and Masters in Environmental Science and Law from Vermont Law School. I have traveled extensively, mostly in Europe, and speak several languages with more or less proficiency. I practiced law in Alaska and Colorado, much of it in remote areas but also large cities. I have taught in an environmental masters program and run large environmental nonprofits and a hot springs resort. I have worked with and run business incubators, a process I love. Empowering people to build their own futures is a passion.

John V. on ContractsCounsel
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June 29, 2023

John V.

Attorney / Owner
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Boulder, CO
26 Yrs Experience
Licensed in CO
Syracuse University School of Law

Business, Real Estate, Tax, Estate Planning and Probate attorney with over 20 years experience in private practice in Colorado. Currently owner/operator of John M. Vaughan, Attorney at Law solo practitioner located in Boulder, CO. My practice focuses on transactional matters only.

George K. on ContractsCounsel
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July 2, 2023

George K.

Owner & Managing Partner
Free Consultation
Denver, No. CO, Steamboat Springs
26 Yrs Experience
Licensed in CO
Whittier School of Law

I've represented small, medium, and Fortune 500 companies in business and litigation matters over the past twenty years. Working for various clients exposed me to a wide range of practice areas and issues. I now manage and own my firm. Contract review and drafting, negotiating agreements and settlements, and defending a variety of lawsuits is the heart of my practice. I'm efficient, solution driven, and work well with clients, other parties, and opposing counsel. I was awarded the American Jurisprudence Award in Advanced Legal Writing and am an excellent writer. I'm also the recipient of the Outstanding Young Lawyer Award and the ABA Military Pro Bono Project Outstanding Services Award. I'm a Marine Corps veteran. My attitude, experience, and expertise will help you achieve your goals.

James N. on ContractsCounsel
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July 27, 2023

James N.

Owner-Attorney
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Colorado, New Mexico, Missouri
12 Yrs Experience
Licensed in CO, NM
University of Missouri - Kansas City School of Law

I'm a Chicago native and Kansas City transplant that has made regulatory compliance and civil administrative litigation for heavily regulated industries my niche for the past decade.

Shane S. on ContractsCounsel
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August 3, 2023

Shane S.

Real Estate/Transactional Lawyer
Free Consultation
Denver, CO
14 Yrs Experience
Licensed in CO
Brigham Young University

I have 13+ years of experience as a real estate, construction, and general transactional lawyer focused on drafting and negotiating commercial leases, purchase and sale agreements, contractor and design professional agreements, etc.

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Real Estate

Commercial Lease

Florida

Asked on Apr 17, 2023

What's the parking situation in a commercial lease?

I am currently in the process of signing a commercial lease for a retail store and I need to know the parking situation that is included in the lease. I have read through the lease and I'm not sure if the parking is included or if I have to arrange it myself. I need to know if I will be able to provide adequate parking for my customers and employees.

Diane D.

Answered Apr 18, 2023

The only way to answer this question is to have an attorney read the lease.

Read 1 attorney answer>

Small Business

Commercial Lease

North Carolina

Asked on Apr 22, 2023

What's the repair responsibility in a commercial lease?

I am a small business owner in the process of signing a commercial lease for a retail space. I am trying to understand my responsibilities as the tenant regarding repairs and maintenance of the property. I want to make sure I understand what my repair responsibility is in the lease before signing it.

N'kia N.

Answered May 30, 2023

In a North Carolina commercial lease agreement, it is common for the landlord to be responsible for major maintenance and repairs (including structural issues) and the tenant to be responsible for minor maintenance and repairs (including general wear and tear). However, the landlord and the tenant may agree to alternative arrangements in the written lease. The best way to more fully understand your specific maintenance and repair responsibilities under a specific lease agreement is to have an attorney review the agreement and discuss it with you. Good luck!

Read 1 attorney answer>

Real Estate

Commercial Lease

Florida

Asked on Apr 21, 2023

What's the force majeure clause in a commercial lease?

I am a small business owner who is in the process of signing a commercial lease for my business. I am concerned about the implications of force majeure clauses in the lease and would like to understand them better. I have read through the clause, but am not sure if it covers all of the situations that may arise and if there are any additional considerations that I need to take into account. I would like to understand the full implications of the clause and any additional steps I should take to protect myself.

Moss S.

Answered Apr 28, 2023

Force majeure is a provision that usually allows either party to delay completing an obligation in a lease. Force majeure is described as an act that is beyond the control of either party, such as a natural disaster, terrorism, or pandemic.

Read 1 attorney answer>

Contracts

Commercial Lease

New York

Asked on Apr 25, 2023

What's the entire agreement clause in a commercial lease?

I am a small business owner who recently signed a commercial lease for my business premises. I am concerned about the “entire agreement” clause in the lease, as I am not sure what it covers and what the implications are for me and my business. I am looking for clarification on the clause and any potential risks associated with it.

Matthew S.

Answered Apr 27, 2023

This is a contractual provision which aims to prevent the party relying on it from being liable for any statements or representations (including pre-contractual representations) except as expressly set out in the agreement. It generally precludes the introduction of parol evidence or evidences of other agreements that are not in writing.

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Real Estate

Commercial Lease

California

Asked on Apr 21, 2023

What's the property description in a commercial lease?

I am a small business owner who is looking to lease a property for my business. I am currently reviewing a commercial lease and am trying to understand what is included in the property description in the lease. I am hoping to gain more clarity on what the property description entails and how it affects my business.

Gagandeep K.

Answered May 24, 2023

A property description in a commercial lease has to sufficiently identify the extent and boundaries of the property being leased. For example, it can be described by a map reference or by metes and bounds, or include a description such as "that certain building on the south-westerly corner of California and Larkin Streets." The commercial lease will include defined terms such as "Building," "Property," and "Premises". The defined terms define/describe the "Property" on which the "Building" is located which has the "Premises"/"Space" that is being leased. A sample definition of is Property Description in a Commercial Lease: ""Property" means the real property on which the Building is located together with the Building and all appurtenant fixtures and personal property of Landlord used in the operation of the Building and/or the Property, and any other improvements now existing or hereafter constructed thereon[, including the parking lot, walkways, and landscaped ground as depicted on the site plan attached hereto as Exhibit [LETTER]]."

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