A business that leases real estate and improvements (buildings, etc.) in the form of space for offices, a warehouse, a restaurant, a nail or hair salon, a clothing store, a coffee shop, or other commercial (nonresidential) space will usually be required to sign a written contract known as a commercial lease agreement.
The tenant (the business occupying the space) who signs a commercial lease agreement is generally expected to be a more savvy, sophisticated, and informed tenant (also known as a lessee) than a tenant in a residential lease, and the law usually does not provide a commercial tenant with the same protections as residential tenant receives.
Because the law does not provide a commercial tenant with as many protections, it is up to the commercial tenant to read, understand, and negotiate protections in a proposed lease agreement before signing it, as most every paragraph in a commercial lease agreement can have a significant impact on a business’s operations and financial stability.
The law governing commercial leases varies from state to state but generally consists of a state's contract law (as applied to the lease agreement)—and in some states, includes the statutes enacted by the state's legislature that specifically apply to commercial tenancies, or that generally apply to both residential and commercial tenancies.
In West Virginia (WV), businesses entering into commercial lease agreements for various types of nonresidential spaces are subject to state contract law and specific statutes that may govern commercial tenancies. Unlike residential tenants, commercial tenants are presumed to have a greater understanding of business and legal matters, and therefore, they are afforded fewer legal protections under the law. It is crucial for a commercial tenant to thoroughly review and negotiate the terms of a commercial lease agreement, as the clauses contained within can significantly affect the business's operations and financial health. The tenant should ensure that the lease terms are clear and favorable before signing. Given the complexity and potential impact of commercial leases, it is often advisable for a business to consult with an attorney to help navigate the negotiation process and to ensure that their interests are adequately protected.