If you’re a San Diego business owner, then you know that when looking for commercial space, the last thing you want to do is blindly sign the lease being offered to you, because a commercial lease always needs to be negotiated. Looking at the Chargers’ lease of Qualcomm Stadium with the City of San Diego, the San Diego Union Tribune reports that the agreement expires in 2020. Before then, the lease provides that the Chargers have a month-long window every year to notify the city of its intent to leave, with penalties at $54.6 million if the team moves next year, but dropping to less than half that amount in 2011 (an amount which some say could be a penalty the team is willing to pay). At least according to Chargers’ special counsel Mark Fabiani, quoted in a Voiceofsandiego.org article, the city got a “bad deal” considering the limited revenue generated by Qualcomm. The article goes on to detail other setbacks, like payments San Diego must make to the Chargers whenever more than 90 percent of the seats in any section are sold, since the City had to remove seats that weren’t in compliance with the Americans with Disabilities Act (ADA). As you enter into your own lease, we’ll advise you on whether federal and California disability laws apply to your business, and make sure the lease says who will be responsible for any modifications that may become needed to comply with the ADA and related laws.
Remember that just like with every other business decision you make, it’s important to anticipate possible changes by looking ahead, and to plan for this in the terms of your lease. As experienced real estate attorneys, we understand that a successful lease negotiation depends on the ability to come up with solutions that will meet everyone’s interests. While a lease needs to cover more than just the basics, one of the most important terms in any lease is length. For commercial tenants like restaurants and retail businesses, a long term lease has many benefits but also carries risk. In this situation, will an option to renew a shorter lease benefit you most? Is it to your advantage to include a lease-purchase option in your agreement? The answer will always depend on your individual circumstances and goals.
We’ll skillfully negotiate and draft the best possible lease for you, research local zoning laws and ordinances, and advise you on potential problems and risks. California law doesn’t provide commercial tenants with the same level of protection that residential tenants enjoy, but by taking the time now to carefully draft a lease, you can minimize uncertainty and prevent many future disputes. If buying commercial real estate is a better move for you, our attorneys can help secure your investment. Contact San Diego Law Firm’s business real estate lawyers at (619) 794-0243 to get the best terms possible before committing to a lease.
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