Commercial Lease Laws in Utah
Don't sign a lease in Utah until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
Tenant build-outs can create lien risk if contractors aren’t paid. Use lien waivers, require landlord consent/notice for TI work, and keep a strong “no-lien” clause in the lease.
Negotiate written notice and cure periods before any unlawful detainer filing. Avoid clauses allowing immediate termination for minor non-monetary defaults.
Common Red Flags in Utah
Commercial real estate in Utah typically favors the landlord in standard lease drafts. Whether you are in Salt Lake City 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 Utah?
Yes, NNN leases are the industry standard for commercial retail and office space in Utah. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Utah?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.