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), a business that intends to lease commercial space such as offices, warehouses, or retail locations is typically required to enter into a commercial lease agreement. Unlike residential tenants, commercial tenants are considered more knowledgeable and are expected to conduct due diligence when entering into lease agreements. West Virginia law does not provide the same level of protection to commercial tenants as it does to residential tenants. Therefore, it is crucial for a commercial tenant to thoroughly review, understand, and negotiate the terms of the lease agreement to safeguard their business interests. The legal framework for commercial leases in WV is primarily governed by the state's contract law, which applies to the interpretation and enforcement of lease agreements. Additionally, there may be specific state statutes that address commercial tenancies, but these are less protective and prescriptive than those for residential tenancies. It is advisable for a commercial tenant to consult with an attorney to ensure that the lease terms are fair and to negotiate any necessary protections before signing the agreement.