Commercial Lease Laws in Oregon
Don't sign a lease in Oregon until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Oregon has no sales tax, but leases may pass through local business fees, utility surcharges, and assessments as “taxes”. Define and limit what can be passed through.
Earthquake risk can drive seismic upgrade projects. Keep structural/seismic retrofits as landlord obligations (not CAM) unless you explicitly agree in writing.
Common Red Flags in Oregon
Commercial real estate in Oregon typically favors the landlord in standard lease drafts. Whether you are in Salem 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 Oregon?
Yes, NNN leases are the industry standard for commercial retail and office space in Oregon. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Oregon?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.