Commercial Lease Laws in Iowa
Don't sign a lease in Iowa until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Some Iowa lease forms include landlord-lien terms that can conflict with your lender’s security interests. Negotiate a lien waiver and carve-outs for financed equipment and inventory.
Add a zoning/permit contingency (signage, food service, alcohol, parking ratios) so you can terminate or delay rent if required approvals or a certificate of occupancy aren’t obtained.
Common Red Flags in Iowa
Commercial real estate in Iowa typically favors the landlord in standard lease drafts. Whether you are in Des Moines 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 Iowa?
Yes, NNN leases are the industry standard for commercial retail and office space in Iowa. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Iowa?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.