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Hawaii Commercial Lease

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A Hawaii commercial lease is a contract between two parties, typically involving the rental of property. The tenant (the party renting the property) agrees to pay rent on a regular basis. In return, the landlord (the party leasing out their property) agrees to provide the tenant with access to their property at an agreed-upon time and for an agreed-upon amount of time. It outlines the rights and responsibilities of each party involved in the lease.

The tenant also agrees to not revamp or alter any part of the property unless given permission by the landlord or their agent. A commercial lease can be for any length of time but typically runs from one year to ten years.

Things to Consider When Signing a Hawaii Commercial Lease

Depending on the type of business you have and the price of the property, you may need to budget for renovations when you sign a commercial lease in Hawaii. Some landlords will require that you pay for any necessary repairs before moving in, while others might offer to cover some costs upfront.

Whether you're looking for office space or retail space, there are several things to consider when signing a commercial lease agreement in Hawaii. Here are five issues that should be on your mind:

  • 1. Location

    The location of your business (in terms of proximity to customers and access to transportation) will significantly impact your bottom line. Make sure that there is adequate transportation to get people to your location and that there is ample parking available if needed (for example, if your business sells cars).

  • 2. Rent

    The amount of rent you pay will vary depending on the location, size, and quality of your business premises. Your landlord will have a set minimum rent for each property based on its market value, but if you negotiate with him or her, he or she may be willing to lower this amount.

  • 3. Security Deposit

    You'll also need to pay a security deposit at the beginning of your lease term to ensure that you'll uphold your end of the bargain throughout it. This deposit will usually be equal to one month's worth of rent payments and will go towards paying any damage caused by you during your tenancy period.

  • 4. Commercial Insurance

    Your landlord may require some form of liability insurance from you before signing off on your lease agreement. He or she may also require that certain maintenance costs be covered by yourself as well as other expenses incurred by the landlord during your tenancy period such as utility bills.

  • 5. Renovations

    Before signing a Hawaii commercial lease, ensure the property is in good shape and does not need major renovations. If it does need some work, the landlord should be willing to pay for it or at least help with some of the costs. It is also important that you get an estimate from an independent contractor so you know what you're getting into.

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Key Term

  • Tenant Improvements

    Some landlords will pay for tenant improvements if they can increase their rent by doing so. Tenant improvements include installing new flooring, painting walls, and upgrading lighting.

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Jeanilou M. on ContractsCounsel
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August 10, 2023

Jeanilou M.

Small Business Lawyer
Free Consultation
Honolulu, Hawaii
14 Yrs Experience
Licensed in CA, HI
Concord Law School

Jeanilou G.T. Maschhoff has over 20 years of comprehensive business operations, finance, and development experience in addition to being a licensed attorney in California and Hawaii. She zealously works as a Trusted Advisor, Business/Brand Consultant, and Advocate for small businesses, non-profit organizations, and personal brands. She is dedicated to helping female business owners and professionals in the entertainment, beauty, fashion, and wellness industries make their goals a reality. She uses her diversified expertise to provide a holistic approach to addressing business and legal needs. Acting as a trusted advisor and outsourced general counsel, she assists on an array of business and personal matters. Passionate about social justice and assisting underrepresented populations, Jeanilou started her legal career working in the non-profit sector working towards access to justice and gender equity. She continues to assist non-profit organizations in many capacities and actively looks to partner businesses with charitable causes, creating a synergistic effect that benefits not only the organizations involved but our society as a whole. As an early adopter of the virtual practice of law, Jeanilou has been assisting law firms and solo practitioners adjust to the remote delivery of legal services and helping businesses explore Web 3.0.

Samantha P. on ContractsCounsel
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Member Since:
October 24, 2023

Samantha P.

Family Law Attorney
Free Consultation
Honolulu, Hawaii
4 Yrs Experience
Licensed in HI
William S. Richardson School of Law at the University of Hawaii

Samantha earned her J.D. at the University of Hawaii, William S. Richardson School of Law and has been a member of the Hawaii State Bar Association since 2020. Samantha has worked as a Family Law attorney in Hawaii since 2020, and has represented clients on a variety of family law matters including: premarital agreements, pre- and post-judgement custody, parenting time and child support issues, pre- and post-divorce issues, interstate custody, and paternity issues. Samantha is a certified E-RYT 200 yoga instructor, taught yoga classes at the Modern Hotel in Waikiki throughout law school, and continues to teach yoga classes at various yoga studios in Honolulu to this day.

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Landlord

Commercial Lease

Ohio

Asked on Apr 12, 2023

Can the rent be increased during the lease term?

I am an entrepreneur who is looking to rent a commercial space for my business. I recently found a space that fits my needs and the landlord is offering a lease agreement. I am wondering if the rent can be increased during the lease term, as this could have a significant impact on my business. I understand that the lease agreement may contain provisions that allow for rent increases, but I would like to confirm this before signing the agreement.

Jeffrey K.

Answered Apr 14, 2023

The lease agreement should specifically provide when and in what amount any rent increases would occur. Usually on a lease with a five year term, rent would increase yearly. If you have a build out credit, you may have free rent for a term if you pay for the build out. If it is a net lease, meaning you pay rent and, either taxes, insurance and/or common area maintenance, you would have a base rent plus the other fees that could increase during the initial lease term usually yearly, but it could be more than one time a year if the costs of these items increase. The rent would also likely increase yearly. If the lease is a gross lease, you will have one monthly rental payment that would increase (most likely) yearly.

Read 1 attorney answer>

Commercial Real Estate

Commercial Lease

Maryland

Asked on Apr 27, 2023

What are the notice requirements for terminating the lease?

I am a business owner who recently signed a commercial lease for a property. I am looking to terminate the lease but am unsure of the notice requirements I must adhere to in order to do so. I would like to know what the notice requirements are for terminating the lease so that I can ensure I do not breach the terms of the lease.

Michael C.

Answered Jun 1, 2023

The notice requirements for terminating a commercial lease in Maryland are going to vary depending on the specific terms of your lease agreement. Please read and refer to your lease. If your lease is month to month, then it's likely you'll have to provide at least 30 days notice. If your lease is for a longer term (6 to 12 months), it's likely you'll have to provide at least 90 days notice, and may need to pay damages for breach of the lease agreement.

Read 1 attorney answer>

Commercial Real Estate

Commercial Lease

Massachusetts

Asked on Apr 17, 2023

Can the tenant assign the lease to another business?

I am a business owner who recently signed a commercial lease for a retail space. I was recently approached by another business who is interested in taking over my lease, and I am wondering if I am able to assign the lease to them. I am looking to understand the legal implications of assigning the lease, as well as any other requirements or restrictions I should be aware of.

Joseph M.

Answered May 12, 2023

In Massachusetts, a commercial tenant can assign or sublet the unit to a third party - UNLESS there is a specific prohibition in the current lease. However, even if there is such a prohibition, it might still be worth speaking to the landlord about since it might be mutually beneficial.

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Real Estate

Commercial Lease

Florida

Asked on Apr 17, 2023

What's permitted alterations in a commercial lease?

I am a small business owner looking to rent a commercial space for the first time. I am considering signing a commercial lease and want to know what kind of alterations are allowed in the agreement. I would like to avoid any potential legal issues or disputes in the future by clarifying what is permitted before signing the lease.

Moss S.

Answered Apr 28, 2023

Usually permitted alterations are cosmetic, and non-structural in nature. Often times the Landlord will require the Tenant to submit plans, or in the alternative the lease will describe the fit and finish that would be allowed.

Read 1 attorney answer>

Commercial Real Estate

Commercial Lease

Massachusetts

Asked on Apr 24, 2023

Can the tenant sublease the property to another business?

I am a business owner and I am looking to rent a commercial space for my business. I am considering signing a commercial lease with the landlord, but I am concerned about my ability to sublease the property to another business. I am trying to determine whether this is an option that is available to me and what the implications would be.

Joseph M.

Answered May 12, 2023

In Massachusetts, a commercial tenant can sublet or even fully assign the unit to a third party - UNLESS there is a specific prohibition in the current lease. However, even if there is such a prohibition, it might still be worth speaking to the landlord about since it might be mutually beneficial.

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