Most commercial leases include an increase in rent to account for inflation, either for each term of the lease or each year of the lease. A well-written lease will include the specific amount of rent for each year or term; however, we have come across some leases where the rent during a renewal term is left open to be determined based on a "reasonable, commercial calculation."
The Danger of Open-Ended Rent Clauses
This type of vague language is open to interpretation and often causes unnecessary headaches and disputes between the tenant and landlord during renewal periods.
Protecting Your Commercial Lease
If you would like to discuss how we can help you draft, review, and/or negotiate a commercial lease on your behalf, please contact Kapadia Naik & Farhoudi or call us directly at 770-881-8081.