Commercial Lease Laws in Tennessee
Don't sign a lease in Tennessee until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Permitting varies by city/county, especially for food/alcohol and signage. Add a permit contingency and keep rent from starting until required permits and a certificate of occupancy are obtained.
In growth markets like Nashville, special assessments and parking requirements can be costly. Define who pays for parking agreements/validations and any district fees billed like taxes.
Common Red Flags in Tennessee
Commercial real estate in Tennessee typically favors the landlord in standard lease drafts. Whether you are in Nashville 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 Tennessee?
Yes, NNN leases are the industry standard for commercial retail and office space in Tennessee. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Tennessee?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.