When working with commercial leases, most sophisticated landlords have "Standard" lease agreements. If you're new to leasing, it sounds kind of intimidating, doesn't it? Sort of like there is some unknown organization somewhere that produces "Standard" lease agreements and everybody signs them without question because they are "Standard". That word standard sure packs a lot of punch, yet usually it is nothing more than fluff. Truth be told, there is no such thing as a standard lease agreement. There is no secret organization, accessible only to the most powerful commercial real estate organizations, that decrees what documents are to be considered "Standard" by the masses.

TENANTS' POINT OF VIEW

Every landlord has their own agreement, either drawn up by their lawyer who copied a bunch of boiler plate clauses from some sample format, or borrowed from his buddy who had it drawn up by his lawyer, or even stole it from some other landlord in some other transaction. While they usually have many of the same clauses, they are not all the same...and they are far from standard....and they are far from non-negotiable. You, as a tenant may certainly negotiate them.

LANDLORDS' POINT OF VIEW

It is expensive to have your lawyer draw up a standard lease agreement for your use but it is worth doing. You can probably save some money by borrowing someone else's standard lease agreement and assembling your own first before sending it off to your lawyer for review. Many of the clauses are self-explanatory and you can figure them out yourself. Your lawyer will be able to determine what you could add and/or modify.

GENERAL COMMENTS

Don't ever sign a lease agreement (landlord or tenant) without your lawyer or real estate agent's input. If the issues are not that complex, your real estate agent's advice may be sufficient. If the issues get complex, a good real estate agent will readily admit that you should seek your lawyer's advice. When in doubt, go for the advice. If you are dealing in a long term lease with numerous rental increases, operating cost clauses, etc., you may want your accountant's analysis of the NPV (net present value) of different alternatives.

While all "standard" leases are negotiable, just how negotiable they are depends on the real estate market in the area and who has more negotiating power in today's market.

Tenants, make sure to get a copy of a landlord's standard lease to review before you have made your mind up that his building is the place for you. The time to negotiate "standard" clauses is before you sign an offer to lease. If you do sign an offer to lease before reviewing the landlord's standard lease, be sure to make the offer subject to satisfactory review of lease.

Landlords, don't let a tenant negotiate away important provisions of your lease that are there for good reason.  If someone wants to negotiate away a clause that is there to protect you, there is usually a reason.