Commercial Lease Laws in North Carolina
Don't sign a lease in North Carolina until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
For longer terms, record a memorandum of lease and request a Subordination, Non‑Disturbance & Attornment Agreement (SNDA) so a lender foreclosure doesn’t wipe out your leasehold.
In coastal NC, wind coverage can be expensive. Ensure deductibles and uninsured losses aren’t passed through to you via CAM without clear limits and documentation.
Common Red Flags in North Carolina
Commercial real estate in North Carolina typically favors the landlord in standard lease drafts. Whether you are in Raleigh 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 North Carolina?
Yes, NNN leases are the industry standard for commercial retail and office space in North Carolina. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in North Carolina?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.