Commercial Lease Laws in Minnesota
Don't sign a lease in Minnesota until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
In Minnesota’s climate, rooftop units and HVAC systems fail often. Negotiate a clear repair vs. replacement split and cap your responsibility for capital replacements.
Clarify who pays for plowing/sanding and roof snow-load issues. Require annual CAM reconciliation detail and exclude capital equipment purchases from CAM.
Common Red Flags in Minnesota
Commercial real estate in Minnesota typically favors the landlord in standard lease drafts. Whether you are in Saint Paul 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 Minnesota?
Yes, NNN leases are the industry standard for commercial retail and office space in Minnesota. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Minnesota?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.