The better the location, the higher the price and, conversely, a poor location will usually reduce the value of an otherwise ideal piece of property. Location is often the prime consideration of business owners in establishing their businesses. Unfortunately, as the Route 422 business corridor rapidly develops the prime business locations are no longer available for purchase by the new or even the established entrepreneur. Many owners are faced with the need to lease rather than purchase real estate in order to maximize their site considerations because of the rapid development of the suburban Philadelphia landscape. The balance of this article is intended to provide the businessperson with some helpful information when either preparing or reviewing a commercial lease.
Leases come in various shapes and sizes.
They do not all look alike. In fact, leases may be legally enforceable even if not in writing. A lease is a contract and is controlled by principles of contract law. It is important to remember that the actual subject matter of most leases, whether commercial or residential, is the building leased, not the land upon which the building stands, and therefore contract law and not property law is applied to disputes between landlords and tenants. An oral lease is a lease agreement where the terms and conditions are not reduced to writing.