Commercial Lease Laws in Texas
Don't sign a lease in Texas until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
TX Property Code § 93.002 allows landlords to change your locks for unpaid rent without going to court first.
A statutory lien exists on your equipment and inventory. You must explicitly waive this in the lease.
Common Red Flags in Texas
Commercial real estate in Texas typically favors the landlord in standard lease drafts. Whether you are in Austin 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 Texas?
Yes, NNN leases are the industry standard for commercial retail and office space in Texas. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Texas?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.