Warehouse Lease Contract Early Exit

[12knots]

Jurisdiction

California

Writing on behalf of a friend who is a tenant in a business 3.5 year lease for a multi-million dollar warehouse.
He would like to exit the lease before the term is up in approximately 18 months.

Questions:

1) The lengthy lease contract is unilateral offering full protections and rights to the landlord and apparently no protections or benefit to him as a tenant. Is there any legal requirement for written protections to the tenant in the contract?

2) The landlord used an initial property tax "estimate" (stated as 1.9% by the landlord at the time) as a basis for monthly property tax charges to be paid by the tenant. Actual rates are ~1.2% resulting in a cumulative monthly overage being paid. Leasing agent mentioned that overages would be 'refunded' Can the landlord continue charging excessive rates without providing justification? Could this be used as grounds for exiting the lease early?

3) Tenant has requested documentation from the landlord showing what the basis for the Common Area Maintenance charges are but the landlord refuses to provide any documentation. Is there a requirement for the landlord to do so?

 

[Zigner]

Your friend should seek the advice of a local attorney to find out the possible implications of breaching the lease. Your friend should also plan (perhaps through his attorney) to discuss this with the landlord.

 

[zddoodah]

He would like to exit the lease before the term is up

Why?

Is there any legal requirement for written protections to the tenant in the contract?

Protections against what? Regardless, there are virtually no laws relating to the contents of commercial leases.

Can the landlord continue charging excessive rates without providing justification?

No one who hasn't read the lease can speak intelligently about this.

Could this be used as grounds for exiting the lease early?

If the landlord is charging something not permitted by the lease, the tenant's recourse is not to pay it. It is absolutely not a ground to terminate early.

Tenant has requested documentation from the landlord showing what the basis for the Common Area Maintenance charges are but the landlord refuses to provide any documentation. Is there a requirement for the landlord to do so?

Again, no one who hasn't read the lease can speak intelligently about this.

Your friend should seek the advice of a local attorney

Concur.

 

[adjusterjack]

The lengthy lease contract is unilateral offering full protections and rights to the landlord and apparently no protections or benefit to him as a tenant.

Very common, almost ubiquitous, in commercial leases.

Is there any legal requirement for written protections to the tenant in the contract?

Not necessarily "in" the contract but California's landlord-tenant laws apply to both commercial and residential leases and rental agreements.

Codes Display Text

leginfo.legislature.ca.gov

The landlord used an initial property tax "estimate" (stated as 1.9% by the landlord at the time) as a basis for monthly property tax charges to be paid by the tenant. Actual rates are ~1.2% resulting in a cumulative monthly overage being paid. Leasing agent mentioned that overages would be 'refunded'

What does the contract say about that?

Can the landlord continue charging excessive rates without providing justification?

Yes. If that's what the tenant agreed to when signing the contract. Again, what do the words in the contract say.

Could this be used as grounds for exiting the lease early?

The terms and conditions of the contract would answer that question.

Tenant has requested documentation from the landlord showing what the basis for the Common Area Maintenance charges are but the landlord refuses to provide any documentation. Is there a requirement for the landlord to do so?

Again, what does the contract say about that.

Your friend should seek the advice of a local attorney to find out the possible implications of breaching the lease. Your friend should also plan (perhaps through his attorney) to discuss this with the landlord.

Agree on both counts.