Commercial Lease Laws in Washington
Don't sign a lease in Washington until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
If you lease public property, you may owe Leasehold Excise Tax (12.84%) instead of standard property tax.
Common Red Flags in Washington
Commercial real estate in Washington typically favors the landlord in standard lease drafts. Whether you are in Olympia 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 Washington?
Yes, NNN leases are the industry standard for commercial retail and office space in Washington. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Washington?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.