Commercial Lease Laws in Alabama
Don't sign a lease in Alabama until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Alabama grants landlords a statutory lien on tenant property for unpaid rent (Ala. Code § 35-9-60). Negotiate a waiver for financed equipment.
Common Red Flags in Alabama
Commercial real estate in Alabama typically favors the landlord in standard lease drafts. Whether you are in Montgomery or elsewhere, you need to watch out for:
- Uncapped NNN Charges: Variable costs like property taxes and insurance can skyrocket.
- Broad Indemnification: Clauses that require you to pay for the landlord's negligence.
- Relocation Clauses: Rights for the landlord to move your business to a worse location.
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Frequently Asked Questions
Is a Triple Net (NNN) lease legal in Alabama?
Yes, NNN leases are the industry standard for commercial retail and office space in Alabama. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Alabama?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.
