Commercial Lease Laws in Maryland
Don't sign a lease in Maryland until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Some Maryland properties can involve ground rent or land-lease structures. Confirm whether any ground rent exists and ensure it isn’t a surprise pass-through to the tenant.
Maryland counties can be strict on use, signage, and health permits. Add a permit contingency and keep rent from starting until required permits and a certificate of occupancy are obtained.
Common Red Flags in Maryland
Commercial real estate in Maryland typically favors the landlord in standard lease drafts. Whether you are in Annapolis 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 Maryland?
Yes, NNN leases are the industry standard for commercial retail and office space in Maryland. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Maryland?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.