Commercial Lease Laws in Georgia
Don't sign a lease in Georgia until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
GA distinguishes between a 'usufruct' (license) and an 'estate'. A usufruct tenant generally doesn't pay direct property tax, but the landlord passes it through.
Common Red Flags in Georgia
Commercial real estate in Georgia typically favors the landlord in standard lease drafts. Whether you are in Atlanta 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 Georgia?
Yes, NNN leases are the industry standard for commercial retail and office space in Georgia. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Georgia?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.