Louisiana Commercial Lease: Types, Key Terms To Know, Costs

A Louisiana commercial lease is a contract between a tenant and a landlord that sets out the terms of the agreement. A commercial lease can be as short as one year or as long as 30 years, depending on the party’s needs and desires. The property owner typically receives rent payments from the tenant company on a monthly basis, while the renter receives the right to use certain areas of real estate in exchange for paying rent.

The terms of each Louisiana commercial lease will vary depending on whether it is an office lease or a retail lease. For example, an office lease may require the tenant to provide landscaping services around the building while a retail lease would not usually include this requirement.

Louisiana commercial leases typically include provisions regarding:

• Rent payment due dates
• Property taxes and insurance costs paid by either party
• Maintenance responsibilities of both parties (like painting)
• Move-out requirements if there is no longer any need for the space (e.g., if you sell your business)

Louisiana Commercial Landlord/Tenant Laws

• Landlords need to include a lead paint disclosure statement in the agreement if the building was constructed before 1978. It is important for the tenant to know if this threat exists in the commercial property they rent.
• The landlord must also mention the expenses of the utilities that will be paid by the tenant. This includes water, trash removal, sewage, phone, and internet services.

Commercial Leases: A Tenant's Perspective

• Work with an attorney when preparing a commercial lease agreement.
• Consider including a particular amount as a penalty for the early termination of a lease as negotiating favorable terms during the initial agreement is easy.
• Negotiate the permission to sublease the rental property to another party for the remaining lease term.
• Consider having a renewal provision, so that when the lease is renewed the rent increases to a percentage of the monthly lease payment amount.

Commercial Leases: A Landlord’s Perspective

• Make sure you have an attorney to review the commercial lease agreement.
• Insist on the landlord’s approval if the agreement has a sublease provision.
• Have rental increases stated for a lease renewal so that the tenant can be your stable, long-term renter. This also helps reduce extended vacancies.

Meet some lawyers on our platform

Benjamin W.

180 projects on CC

CC verified

View Profile

Allen L.

188 projects on CC

CC verified

View Profile

Dolan W.

1147 projects on CC

CC verified

View Profile

Elizabeth J.

82 projects on CC

CC verified

View Profile

Key Terms Related to Louisiana Commercial Lease

• Lease Term

  The term of the lease is the length of time you will be renting the space. It is often expressed in months or years, such as "1 year," "2 months," or "3 years."

• Security Deposit

  A sum of money held by the landlord to protect against damages caused by the tenant during their tenancy and/or unpaid rent or other charges due under the lease agreement.

• Sublease Agreement

  An agreement between two parties in which one rents property from another party with an option to sublease some or all of that property to a third party.

• Subordination Agreement

  An agreement between two parties in which one rents property from another party with an option to subordinate his interest in favor of another party at some later time and upon certain conditions specified in such agreement.

• Tenant's Obligations

  Landlords have many duties and responsibilities under Louisiana law, but tenants also have some responsibilities, too — usually spelled out in a written lease agreement between landlord and tenant.

Conclusion

A Louisiana commercial lease should be drafted by an experienced attorney who has experience drafting these types of contracts. Looking for experts? Compare multiple free proposals from vetted lawyers and save 60% less than traditional law firms - start your job proposal here.