Whether you are the owner of a building or a real estate portfolio and have legal and juridical questions related to leasing, our commercial and industrial real estate lawyers in Montreal can provide you with advice and guidance. We can assist you in negotiating your commercial leases, preparing and drafting clauses, and represent you in court in case of disputes.
Legal Experience and Legal Advice in Commercial and Industrial Real Estate
The value of your property or real estate portfolio depends on the rental income it generates. The growth of your business, whether you are a tenant or owner of a commercial or industrial space, will depend on what has been negotiated in the commercial lease.
This is why negotiating clauses in commercial leases can be crucial. It is possible to include clauses that address interesting renewal methods, assignment, subleasing, premises maintenance, and even liability insurance.
Acquisition or Sale of Commercial or Industrial Property, Financing, and Strategic Planning
Acquisition or Sale of Commercial or Industrial Property, Financing, and Strategic Planning
Our lawyers familiar with commercial and industrial real estate matters can assist you in planning your real estate projects, negotiation, financing, and the closing of the intended transaction. Whether you are buying or selling commercial or industrial properties, having well-structured financing tailored to your situation is essential.
Representation in Courts, Prevention, and Resolution of Disputes
Representation in Courts, Prevention, and Resolution of Disputes
Additionally, our commercial and industrial real estate lawyers can help prevent disputes. Whether it is regarding leases or employment termination, our expertise can assist you and potentially save you money. For example, it may be wise to seek advice on lease termination methods. Some may prefer an extrajudicial or judicial method for security against potential damages. Our added value is to provide you with a comprehensive view before a legal process is initiated. Once it is initiated, we remain by your side, always keeping your company values and desired confidentiality in mind. Whether it is in the Court of Quebec, the Superior Court, the Court of Appeal, or any other court or tribunal, our team of commercial and industrial real estate lawyers has the experience to assist you.
Negotiation and Drafting of Commercial Leases
Negotiation and Drafting of Commercial Leases
In the following, we will provide an analysis of certain clauses in commercial leases that strongly impact the commercial and industrial real estate industry and for which our commercial and industrial real estate lawyers can assist you.
Types of Rents to Pay
Types of Rents to Pay
Gross Lease
Only includes rent for the leased premises without any other charges except minor maintenance repairs as stipulated in Article 1864 of the Civil Code of Quebec.
Semi-Gross Lease
Includes rent and an additional amount for an increase in property taxes.
Net Lease
Usually includes rent, minor maintenance repairs, increased property taxes, and maintenance, repair, and administration fees.
Super Net Lease
In addition to the net lease, it includes charges for significant repairs to the building.
Triple Net Lease
The tenant is responsible for unexpected replacements in addition to the super net lease charges.
Absolute Net Lease
The tenant pays for everything related to the property, including minor repairs, significant repairs, and interest charges on the mortgage.
Renewal Option
Renewal Option
Once your business is established and your clientele knows the location, it can be interesting to include a lease renewal option. As a tenant, this allows you to use your option to renew your lease for several more years. It is important to note that the lease renewal option often comes with a provision for renegotiating the rent. To ensure that the rent does not hinder the renewal, it can be useful to include objective criteria or references in the renewal option clause.
Judicial Termination or Termination by Right
Judicial Termination or Termination by Right
These types of terminations do not apply to residential leases. Commercial leases are contracts where the balance of power is usually much more equitable, and the parties can negotiate the clauses. In some cases, landlords will include a clause allowing them to terminate the lease by right in case of default. However, these clauses have strict validity conditions and are interpreted restrictively. The party wishing to use it must prove the other party's default and the validity of the clause by showing that it was not imposed but rather negotiated, brought to the tenant's attention, and that the tenant's consent was freely and knowingly given. Furthermore, the landlord must, as required by a notice, inform the tenant of their intention to consider the lease terminated before actually doing so. This gives the tenant the opportunity to remedy the default within the allotted time to avoid lease termination. In case you do not have a termination by right clause in your commercial leases, the judicial option is always available. This option allows you to request the termination of the lease and the eviction of the tenant. Some landlords prefer this option as it carries fewer risks of damages claims from the tenant and is considered the standard by the courts.
In summary, having a termination by right clause in commercial leases can be an interesting mechanism. However, it is still relevant to analyze the situation on a case-by-case basis to determine whether to use the termination by right clause or if it is better to resort to the courts.
Regardless of your situation, it is important to consult a lawyer to obtain specific legal advice and guidance tailored to your industry and assistance throughout the process.