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Small Business Tenants: Know Thy Lease
Today's booming commercial market commands premium rental rates and offers great benefits to property owners leasing space to all types of small businesses. The market, however, can present a challenge for tenants — from restaurants to retailers — that lease that space.
Property owners recognize they can pull in much higher rents if they bring in new tenants at the going market rate. Existing tenants typically pay lower rents, reflecting the rates of years past.
So, what's a commercial real estate owner to do? Many landlords are loyal to their tenants and only increase rates at the end of the current lease. Others take a more aggressive approach. They actively find creative ways using lease restrictions to evict tenants. While this isn't necessarily fair, it is legal.
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