Hiring an attorney vs. a commercial broker:

Understanding that your broker’s skills are not interchangeable with an attorney’s skills is crucial. Before signing a commercial space LOI and lease, hiring an attorney with leasing and negotiation contract experience is essential. Never allow your commercial broker to interpret the lease. When a lease is read, it should be interpreted as if you were applying the law.  Luckily, the attorney we worked with was a straight-up shooter and picked up on a few things on the lease that helped us return to the drawing board not once but several times. Some attorneys are also experts in the field of contract negotiation, and they can do both. Different attorneys have different areas of focus, just like doctors. The attorney’s role in the leasing and negotiation process is paramount, as they can help you navigate potential legal pitfalls and ensure a fair and beneficial agreement.

Hiring a Lawyer with clear expectations:

It’s important to be strategic about when to involve the attorney in the process and to maintain clear communication throughout. You will need an attorney during the LOI and lease process.  Hiring an attorney can be costly; most charge over $120 hourly. Do not wait until the last minute because it will cost you even more. When we had a first draft of an LOI with the help of the commercial broker, an attorney was brought in. Usually, LOI is a few pages long compared to leases, which are over 20 pages long. Do not ask Julio why the leases are long. Be clear with the attorney why you brought them in and the type of help you need. Express reading a lease or LOI from a legal perspective is not your strength. Some legal documents are written in a way that does not make any sense. Take time to read over them and highlight any line items that you might have questions. Asking questions is part of the process. If you have not read the full LOI or lease, share that too. Being transparent is key. Schedule a meeting to review the LOI, lease, and legal documents. The attorney should have a list of questions and suggestions based on the documents you are reviewing. To avoid time on the phone, request the list of questions beforehand. It will help you prepare for the in-person, zoom, or phone conversation. Also, when scheduling the call, make sure that is the only thing you are doing and not multitasking. Make sure to keep the commercial broker in the loop. The end goal of having an attorney is to minimize any legal consequences down the line.

Takeaways:

• Higher an attorney with experience in lease contract negotiation
• Set clear boundaries
• Ask questions
• Be transparent
• Listen to the feedback
• Do not try to interpret the lease. What it says and what it means in court might be different. This caution isu, but to make you aware of the  not to scare yopotential risks. It’s always best to rely on the expertise of your attorney in such matters.