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Nacmias Law Firm, PLLC

Real Estate

Lease Agreements

We draft and negotiate NYC commercial and ground leases — for restaurant and retail tenants, office and industrial users, building owners, and ground-lease structures — across all five boroughs.

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Overview

What you need to know about Lease Agreements.

The basics, what we do, and the issues we see most.

What should I look for when negotiating a NYC commercial lease?

Quick Answer

NYC commercial leases concentrate risk in a handful of clauses: use, build-out and Tenant Improvement (TI) allowance, base rent and operating expense pass-throughs, compliance and certificate-of-occupancy alignment, personal guaranties (the 'good guy guaranty'), assignment/sublet, and exit options. The lease term, rent escalation, and security can all be negotiated — what's worth fighting for depends on which clauses contain the actual operational risk for your business or property.

Services we offer for Lease Agreements.

Commercial lease negotiation in NYC is where most small businesses and landlords commit (or destroy) value. The standard form leases have clauses that quietly transfer risk; a thoughtful negotiation can reshape years of operating cost. Here's what we do for both sides.

  • Negotiate restaurant, retail, and office leases — base rent, percentage rent, escalation, OpEx, TI allowance
  • Draft and negotiate good guy guaranties — duration, scope, surrender conditions, build-out triggers
  • Negotiate assignment and sublet clauses — landlord consent standards, recapture rights, profit-sharing
  • Negotiate compliance clauses — DOB/HPD/FDNY violation responsibility, base building vs. tenant work
  • Negotiate exit options — early termination, kick-out rights based on sales thresholds, casualty/condemnation provisions
  • Draft and negotiate ground leases (long-term leases of land, lessor reverter at term end)
  • Resolve lease disputes — interpretation, default cure, surrender negotiations

Scenarios we see most.

  • Base rent escalations — fixed, CPI, percentage, market reset; cap structures
  • Operating expense (OpEx) pass-throughs — base year, gross-up, cap-ex exclusions, audit rights
  • Good guy guaranty negotiation — what triggers release, who is the guarantor
  • Use clause — exclusive use, prohibited uses, change of use, business interruption
  • Build-out and TI allowance — base building delivery condition, work letter, TI funding mechanics
  • Assignment/sublet — landlord consent, recapture, profit-sharing clauses
  • Compliance — DOB/HPD/FDNY violations, who fixes what, who pays
  • Surrender, holdover, casualty, condemnation — end-of-term mechanics

Who we help

Who we represent.

Every case handled directly by the attorney you speak with at intake.

First-Time Buyers

Co-op and condo closings, board package review, contract negotiation.

Sellers & Investors

Sale contract drafting, title clearance, post-closing matters.

Developers & Sponsors

New-construction sales, offering plans, sponsor unit closings.

Commercial Buyers & Lessors

Commercial purchases, build-out clauses, assignment provisions.

How we handle your case

From summons to resolution.

The same attorney handles your matter from intake through hearing and closeout.

  1. 1

    Step 1 of 5

    Diligence — pull C of O, prior violations, building zoning to confirm intended use is permitted

  2. 2

    Step 2 of 5

    Markup of LOI or initial lease form (landlord-form or tenant-form depending on side)

  3. 3

    Step 3 of 5

    Iterate negotiation rounds with opposing counsel; coordinate with broker and any guarantors

  4. 4

    Step 4 of 5

    Finalize rider, work letter, and any side-letter agreements

  5. 5

    Step 5 of 5

    Closing of lease execution and handoff for tenant fit-out/build-out coordination

Frequently asked

Questions clients ask first.

Direct answers from the attorney who handles these matters.

Most asked

What is a 'good guy guaranty' and should I sign one?

A good guy guaranty (GGG) is a personal guaranty limited to the tenant's obligations through the date the tenant surrenders the premises in good condition with all rent paid through surrender. It protects landlords against tenants who walk out without rent but stops well short of full lease guaranty. From the tenant principal's perspective: signing one is normal in NYC commercial leases and substantially better than a full guaranty — but the surrender conditions and notice requirements deserve careful negotiation. From the landlord's perspective: GGG is the negotiated middle ground that gets deals done.

Question 2

What's the difference between gross, modified gross, and triple-net leases?

Gross lease: tenant pays a single rent figure that includes operating expenses (rare in NYC commercial). Modified gross: tenant pays base rent plus their proportionate share of OpEx increases over a base year (common for office). Triple net (NNN): tenant pays base rent plus a proportionate share of all operating costs — taxes, insurance, common-area maintenance (common for retail strip centers). The lease type determines whether OpEx negotiation matters and how the tenant should model occupancy cost.

Question 3

Who's responsible for fixing DOB/HPD/FDNY violations during the lease?

It depends on the lease — and this is one of the most important provisions to negotiate. Standard landlord-form leases push violations to the tenant, including pre-existing ones. Tenant-favorable terms carve out: pre-existing violations (landlord), violations caused by base building (landlord), violations from tenant's specific use or improvements (tenant). The compliance clause directly affects future legal exposure and operating cost. We highlight this provision in every commercial lease review.

Question 4

What's the NYC Commercial Rent Tax (CRT) and does it apply to my space?

The NYC Commercial Rent Tax (NYC Admin Code Title 26) applies to commercial tenants in Manhattan south of 96th Street paying annual base rent of $250,000 or more. The rate is 6% of base rent, with credits and exemptions for smaller spaces. Outside Manhattan and below the threshold, CRT doesn't apply. Tenants in covered areas should model CRT into total occupancy cost from the LOI stage.

Question 5

What does it cost to engage on a commercial lease?

Typical fees: review and negotiation of a restaurant or retail lease for an existing space: $3,500-$7,500 flat fee. New build-out leases or anchor tenant arrangements: $7,500-$15,000+. Ground leases or sale-leaseback structures: scoped per matter. Landlord-side lease drafting (own form): $5K-$15K depending on complexity, with discounts for portfolio templates. Free initial consultation.

Question 6

Can a tenant assign or sublet without the landlord's consent?

Most NYC commercial leases require landlord consent. Negotiated standards: 'consent not to be unreasonably withheld' is the typical tenant-favored language. Landlord-favored language gives the landlord absolute consent rights or a recapture right (landlord can take back the space rather than allow the assignment). Restaurants and retail typically face stricter restrictions than office. The assignment clause governs whether the tenant has business-flexibility — particularly material for tenants planning future M&A or franchise growth.

Free case review

Commercial lease on the table?

The clauses with the biggest long-term impact aren't always the headline rent number. Get the lease reviewed before signing the LOI, not after. Same-day case review during business hours.

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Or email us

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An attorney reads every message.

  • Same-day response

    During business hours

  • Direct attorney access

    Same lawyer from intake to close

  • Flat-fee pricing

    On most OATH and closing matters