When you find a commercial space to rent for your business, you may believe that all commercial leases are created equal and assume that the terms are fair and in line with Texas law. However, there are many different terms in a commercial lease that can be beneficial or detrimental to your business. One important clause that often goes unconsidered is a “use” clause.
There is more than one type of use clause that can be included in a commercial lease, all of which can affect how you run your business. The following is a brief overview of these clauses.
Restrictive Use Clauses
This type of clause prohibits you from using the commercial space in certain ways. For example, a landlord may prevent tenants from cooking or selling food in that space. This type of clause may be fine if the restrictions do not apply to your business (e.g. you were never planning on cooking or selling food). However, some restrictive use clauses can be broad and you may not realize the potential effects on your operations.
Permissive Use Clauses
Instead of stating what you cannot do, permissive clauses state how you can use the space, thereby prohibiting most other activities. These clauses should be carefully examined to ensure they include permission for all of your intended operations.
Exclusive Use Clauses
Exclusive use clauses can be extremely beneficial for your company and you may want to negotiate with the landlord to obtain one. This gives your company the rights to be the only one conducting your type of business in a development. For example, if you do not want to compete with other salons in a shopping center, you may try to obtain exclusive rights to use the commercial space as a salon.
Contact a Houston Business Contracts Attorney for Help Today
It is critical to have a highly experienced business contracts lawyer review any commercial lease agreement before you sign it. You do not want to learn that you are stuck in a lease that limits the type of business you want to run. At The Weisblatt Law Firm LLC, we review, negotiate, and draft all types of business contracts for companies of all sizes in and around Houston. If you would like to learn more about our services, please call our office at 713-666-1981.
1https://statutes.capitol.texas.gov/Docs/PR/htm/PR.93.htm
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
