A Minneapolis business owner may choose to rent or buy a commercial property out of which to operate the person’s enterprise. If the person buys the space that the business will occupy then the person will have a fair amount of autonomy regarding what to do with the space. If a business owner chooses to rent a building or commercial space, the person may be bound by the rules of the property owner from which the business rents.
What a party may do with rented space is generally codified in a commercial lease agreement. Like residential lease agreements, a commercial lease agreement should cover, at minimum, basic terms such as the length of the lease, the cost of the rent to the leasing party, what the leasing party may permissibly do with the space or building and other terms. Lease agreements can go into considerably more detail regarding these and other contractual items.
If a leasing party discovers that the owner of the commercial property is demanding an increase in rent, then the leasing party can first turn to the operating agreement to see if such an action is contemplated or permissible. It is not uncommon for a lease agreement to leave with the property owner the right to increase rents at future times. In some cases, a leasing party will be bound to the rent terms of the agreement that the person signed with the commercial property owner.
If an increase in rent is not anticipated in a commercial lease agreement then getting to bottom of such an issue may not be as straightforward. Attorneys who practice real property law can help their clients review their commercial lease agreements and to interpret terms that may not be clear. As with all information contained on this legal blog, readers should not rely on this post as specific advice and can consult their own legal representatives for further assistance.