7 Red Flags Your Commercial Landlord Isn’t Negotiating in Good Faith

As a business owner looking for commercial space, you likely understand the importance of negotiating a fair and reasonable lease agreement. However, some landlords may not always act in good faith during these negotiations, which can leave tenants with unfavorable lease terms, unexpected expenses, or even legal disputes down the road. Here are seven warning signs to look out for that may indicate that your commercial landlord is not negotiating in good faith:

1. Pressure to Sign Quickly: If your landlord is pressuring you to sign a lease quickly without giving you enough time to review and understand the terms, it could be a sign that they are trying to hide unfavorable terms or avoid giving you the chance to negotiate better ones.
2. Lack of Flexibility: If your landlord is not willing to make any concessions or changes to the lease agreement, this could be a sign that they are not negotiating in good faith. A landlord who is genuinely interested in establishing a long-term relationship with you should be willing to find common ground and negotiate in good faith.
3. Hidden Fees or Expenses: If you notice fees or expenses that were not initially disclosed during the negotiation process, it could be a sign that your landlord is trying to take advantage of you. Make sure to ask your landlord about all the expenses that come with the lease, including utilities, maintenance, and other fees.
4. One-Sided Lease Terms: If the lease agreement heavily favors the landlord without providing you with any protections, it could be a sign that they are not negotiating in good faith. A fair lease agreement should be balanced, providing protection and benefits to both the landlord and the tenant.
5. Unreasonable Security Deposit: If your landlord is asking for an unreasonably high security deposit, it could be a sign that they are not negotiating in good faith. A security deposit should be a reasonable amount that reflects the value of the leased property, and it should not be used to hold you hostage or as a way to coerce you into agreeing to unfavorable lease terms.
6. Lack of Communication: If your landlord is unresponsive or uncommunicative during the negotiation process, it could be a sign that they are not negotiating in good faith. A landlord who is genuinely interested in establishing a long-term relationship with you should be responsive and transparent during the negotiation process.
7. Unreasonable Termination or Renewal Terms: If the lease agreement contains unreasonable termination or renewal terms that favor the landlord, it could be a sign that they are not negotiating in good faith. A fair lease agreement should contain reasonable and balanced termination and renewal terms that provide protection and benefits to both the landlord and the tenant.

If you notice any of these red flags during your commercial lease negotiations, it is important to be proactive and address them. Consulting with a commercial real estate attorney can help you navigate the negotiation process and ensure that you are not taken advantage of. An experienced attorney can help you negotiate fair lease terms that protect your interests and set you up for success.