Commercial Lease Laws in New Jersey
Don't sign a lease in New Jersey until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
The Industrial Site Recovery Act (ISRA) may require environmental audits before you can terminate your lease or sell your business.
Common Red Flags in New Jersey
Commercial real estate in New Jersey typically favors the landlord in standard lease drafts. Whether you are in Trenton 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 New Jersey?
Yes, NNN leases are the industry standard for commercial retail and office space in New Jersey. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in New Jersey?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.