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Many people, as potential tenants, tend to assume that a commercial lease of Hawaii is designed to be fair to both parties and therefore not bother to read carefully the terms and conditions. That is a big mistake and quite shocking when you consider commercial leases are typically twenty to thirty pages contain numerous provisions that are pro-landlord. Failure to have a Hawaii attorney review your lease it seems shortsighted given the risk of not understanding what is getting yourself into.

However, for those brave individuals who choose to enter into a commercial lease Hawaii without any assistance legal, the following are some aspects that must be considered before signing:

 • Make sure the lease specifies the owner shall deliver the premises to which, especially when the building has not yet been built. Understand your options if the premises are not delivered to you in time as this could affect the date on which they can open for business. If the building has not been constructed to ensure that it can terminate the lease if the building not ready for occupancy by the date needed.

 • What is the permitted use its facilities? The owner tends to favor use clause is very narrow because different use may be advisable for the owner or tenants of existing ones, while the tenant usually want use a general provision allowing uses that are not expected or anticipated in the execution of the lease.

• Are there any restriction on the assignment of the lease or sublease? Do I need an owner's consent? For tenants who are looking to transfer facility to another candidate, this clause may restrict the transfer of this type.

 • The owner has the option of relocating to at any time? If so, you may want to insert language that the transfer should be a place of similar size, quality and suitable for use.

 • Is there a "covenant not to compete"? If so, what is the area (radius) which prohibits competition? Unlike the mainland, Hawaii is only so big. We've seen some non-competition areas to include the entire island of Oahu, which is not reasonable.

 • If possible make sure you have the exclusive right to carry out your type of business in the building. Otherwise, your biggest competitor may end up being your next door neighbor.

 • Is it required that the owner (and / or your family member or spouse) must sign a personal guarantee? Note that in case of insolvency of a tenant under the contract lease then the landlord may bring an action against the parties to sign the guarantee.

 • How much time the lease? Hawaii law provides that a tax on transportation must be paid on all leases or subleases with all terms with five years or more.

• Â Is there any provisions that require you to pay interest? Most commercial leases have a provision in which the landlord will charge the tenant interest "to the maximum rate permitted by law" if a monetary policy by default, as when the tenant must pay the owner interest on all amounts due. "Keep in mind that Hawaii Revised Statutes Chapter 478 (Hawaii interest and usury "statute) does not apply to commercial transactions and therefore there is no limit to the interest rate in a commercial environment.

As you can see, this not a complete list of issues that need addressing leasing commercial location. Each tenant's situation may be different, so the contract lease should be tailored to your unique circumstances. This makes it even more important to seek consultation with an attorney who has the experience to analyze your situation and is able to suggest revisions to the lease that are more favorable to you. Do not wait until it's too late.

Show Your Home at it’s Best. Michael Ackerman Seattle Real Estate.