Legal Question in Landlord & Tenant Law in California

Fees in Gross Commercial Lease

We are negotiating a lease for a commercial unit. We were told there were no net fees, just the flat rate rent. When we received a copy of the lease under ''lessee's share of common operating expenses'' it stated ''12.00%.'' Also, it stated 0% for the period of the first month of the lease. It appeared that there would be a 12% fee for something after the first month. We addressed this with the landlord and he said it was confusing and there were no other costs, etc.. He revised the lease and left the above the same and added ''RE taxes: Gross, Insurance: Gross, Common Area Operating Expenses: Gross.''

I'm going to try to get this to our attorney but in case I have to talk with the landlord before that I feel this is some form of a net lease, not a flat fee gross. It is an ''Air Commercial standard multi-tenant Gross lease.''

Thanks in advance for any thoughts on this.


Asked on 3/21/09, 6:33 pm

2 Answers from Attorneys
Daniel Bakondi The Law Office of Daniel Bakondi

Re: Fees in Gross Commercial Lease

Thoughtful question. The bush that you are beating around, is, that you probably do not want unclear terms in your agreement... especially not those that will be defined by the other party later on as they decide at that future point to define them. Why not just write out exactly what is intended with clear plain language?

Best,

Daniel Bakondi, Esq.

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Answered on 3/22/09, 2:01 am
David Gibbs The Gibbs Law Firm, APC

Re: Fees in Gross Commercial Lease

There is virtually no way someone can advise you on this via this forum. Commercial lease agreements are extremely complex, and require thorough review to avoid the kinds of issues you discuss. I would suggest, since you indicate that you have an attorney, you do nothing until your attorney can review and modify the lease to meet your expectations and needs. What you describe as additional fees are generally referred to as CAM (Common Area Maintenance) charges which are typical in standard form leases.

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Answered on 3/23/09, 1:14 pm


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