Submitted by Anonymous on Fri, 05/14/2010 - 12:11
I am contemplating signing a commercial lease and notice this clause. Is this common practice?
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Editor's Response
I believe that clause, commonly known as a tax escalation clause, is contained in most commercial leases used in Massachusetts. Typically, you, the tenant, will be required to pay additional rent equal to your proportionate share of any increase in real estate taxes on the entire building. My experience with commercial leases is limited, so I encourage you to have a MA real estate attorney look at your lease before you sign it. I know money is always tight when you're starting a business, but paying for an hour or two of her time may save you many headaches in the future. Good luck.