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Some Less-Traveled Areas of Due Diligence for Commercial Tenants and Their Counsel
In addition to focusing upon the oft-quoted mantra about location, sophisticated commercial tenants often recognize that a well-drafted commercial lease can be worth its weight in gold. On the other hand, when seeking legal input focused upon the lease document, commercial tenants (and perhaps their counsel) sometimes overlook the full range of value that counsel can bring to the property selection due diligence process.
For example, careful attention is typically paid to the functional and aesthetic aspects of the property, and to ensuring that the lease agreement itself accurately expresses the intended business terms. Unlike the situation in an actual acquisition, however, tenants may less readily recognize the importance of reviewing the status of a landlord's title and related matters of record. However, a prudent attorney (and client) will take the extra step and conduct a thorough review of the title and other items that may be gleaned from the official property records and, in some instances, unofficial sources. Naturally, this degree of care becomes even more significant for a tenant contemplating a long-term lease.
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