Commercial Lease Laws in Indiana
Don't sign a lease in Indiana until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Tenant build-outs can lead to contractor liens if subs aren’t paid. Use lien waivers, keep a strong “no-lien” clause, and require landlord consent/notice procedures for all TI work.
Indiana businesses may owe personal property tax on equipment and fixtures. Budget for it and make sure the lease doesn’t also shift building-wide taxes, assessments, or admin fees to you without transparency and audit rights.
Common Red Flags in Indiana
Commercial real estate in Indiana typically favors the landlord in standard lease drafts. Whether you are in Indianapolis 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 Indiana?
Yes, NNN leases are the industry standard for commercial retail and office space in Indiana. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Indiana?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.