Arizona commercial lease agreement

Tips for Structuring Building Upgrade Requests & Other Key Amendments for Existing Commercial Lease Agreements in Arizona

Tips for Structuring Building Upgrade Requests & Other Key Amendments for Existing Commercial Lease Agreements in Arizona 2043 1362 Gottlieb Law

Landlords and tenants alike understand the importance of a lease agreement in Arizona, which governs the use of a property during a set period of time and establishes a working relationship between parties. This is common knowledge, but what is lesser known is that any party named in a commercial lease is able to request amendments to the agreement.

For commercial properties especially, building upgrades and property expansions can significantly impact the terms of a lease. Any planned changes to the premises itself requires revisiting existing agreements, so landlords and tenants should be familiar with the amendment process. It is also wise to work with an experienced real estate attorney who can help with navigating Arizona commercial lease amendments and protecting your interests.

Commercial Lease Amendments vs Addendums

There are two types of changes most commonly made to commercial lease agreements in Arizona: amendments and addendums. An amendment is a modification or change made to an existing lease agreement. It typically alters specific terms or provisions of the lease, such as rent amount, lease duration or permitted use of the premises. An amendment requires the consent of all parties involved and is usually signed as a separate document to be attached to the original lease.

On the other hand, an Arizona commercial lease addendum is an additional document that supplements the original lease agreement. It introduces new provisions or terms that are not included in the original lease. An addendum can address various aspects, such as additional tenants or legislation that requires additional legal disclosures. Like an amendment, an addendum is also typically signed by all parties involved and becomes part of the lease agreement.

While both a lease amendment and addendum involve modifications to a commercial lease agreement, an amendment changes existing terms, while an addendum introduces new provisions or terms.

When to Amend a Commercial Lease

Over the course of a commercial lease term, one or more parties who signed the agreement may find themselves in different circumstances that make certain provisions within the lease unfavorable. Rather than drafting an entirely new lease agreement, the parties can simply create an amendment to the original document.

The following are common examples of when to amend a commercial lease:

  •       To change the amount of rent
  •       To address any changes on the premises, such as expansions or building upgrades
  •       To extend the length of the lease
  •       To adjust terms, such as use provisions

As long as all parties agree to the proposed amendments of the lease agreement, any details can be changed.

Tips for Structuring a Lease Amendment Request

When structuring building upgrade requests or other key amendments for existing commercial lease agreements, it’s important to be clear, concise and professional in your communication. Here are some tips to help you structure such requests effectively:

  1. Start with a polite and professional salutation, addressing the appropriate party or parties involved in the lease agreement.
  2. Clearly state the purpose of the request. For example, if you are requesting building upgrades, specify the nature of the upgrades and their significance.
  3. Provide a detailed explanation that explains why the requested amendment or upgrade is necessary. Outline the benefits it will bring, such as improved functionality, energy efficiency, safety or compliance with regulations. Include any relevant data or documentation to support your request.
  4. Specify the desired terms. This may include the scope of the upgrades, estimated costs, timeframe, responsibility for expenses and any other relevant details. Be as specific as possible to avoid ambiguity.
  5. Justify the financial implications. If the requested amendments or upgrades will involve additional costs, provide a reason for these expenses. Explain how the upgrades will enhance the value of the property, attract more tenants or improve overall profitability.
  6. Propose a meeting or discussion to further explain your request and address any questions or concerns. This shows your willingness to collaborate and find mutually beneficial solutions.
  7. Express willingness to negotiate the terms of the requested amendments. This demonstrates a cooperative approach and can help foster a positive working relationship.
  8. Conclude your request by showing appreciation for the recipient’s attention to your request.
  9. Offer your contact information so that the recipient can reach back up with you to follow up on your request.
  10. Follow up with an email or phone call if you don’t receive a response within a reasonable timeframe to ensure your request has been received and to discuss next steps.

It’s important to keep in mind that all Arizona commercial lease agreements vary — and each has its own set of clauses. This is why you should consult with qualified legal counsel, which can help you navigate the complex process of making significant amendments to commercial lease agreements in Arizona.

Review Your Commercial Lease Amendments with an Experience Real Estate Attorney

Negotiating any proposed adjustments to a commercial lease in Arizona can be a complex and time-consuming process. Remember to assemble a strong team of professionals who can understand your needs, negotiate key terms and protect your interests.

The attorneys at Gottlieb Law are prepared to assist your company with negotiating a favorable commercial lease agreement. Contact us today at 602-899-8188 to schedule an initial consultation or make an appointment on our contact us page.

What are Broader Use Provisions in Commercial Lease Agreements?

What are Broader Use Provisions in Commercial Lease Agreements? 1900 1069 Gottlieb Law

Lease agreements form the foundation of a landlord-tenant relationship, defining the rights and responsibilities of both parties. Among the crucial elements of these agreements for commercial properties are the broader use provisions, which establish the parameters for how tenants can utilize the leased premises.

These provisions play a vital role in clarifying the permissible activities and purposes for which the tenant can use the space, while also addressing restrictions and obligations that ensure the property is used in a manner that aligns with the landlord’s interests and regulatory requirements. Read on to learn about the significance of broader use provisions in commercial lease agreements, their key components and considerations and their impact on both landlords and tenants.

What are broader use provisions in commercial lease agreements?

Generally speaking, broader use provisions in commercial lease agreements refer to clauses that define and govern the permitted use of the leased premises by the tenant. These provisions outline the specific activities or purposes for which the leased space can be utilized, as well as how the space cannot be used. They are important because they clarify the intended scope of the tenant’s business operations within the leased property and help establish boundaries and expectations between the landlord and tenant.

The following are some use provisions to consider, whether drafting a commercial lease for an owned property or researching spaces in which to operate a business.

Permitted Use

The lease agreement will typically specify the permitted use of the premises. This may be a general description of the tenant’s business or specific activities allowed. For example, a retail lease might specify that the premises can only be used for a clothing store.

Exclusive Use

In some cases, the tenant may negotiate an exclusive use provision, which grants them the exclusive right to engage in a particular business activity within the leased property. For instance, a GNC in a shopping mall might have an exclusive use provision stating that they are the only business allowed to sell health and wellness products. This prevents the landlord from leasing nearby spaces to competitors (like Vitamin Shoppe) engaged in the same type of business.


The lease agreement may also contain restrictions on certain activities or uses. These restrictions can be aimed at maintaining the property’s integrity, complying with zoning regulations or protecting the interests of other tenants or the landlord. For instance, a lease agreement might prohibit the tenant from using the premises for manufacturing or conducting hazardous operations.

Changes to Use

If the tenant wishes to modify or expand the permitted use of the premises beyond what is initially specified in the lease agreement, it may need to seek the landlord’s approval. The process for obtaining such approval should be outlined in the lease agreement, or the landlord and tenant can collaborate on an updated lease agreement that governs the relationship for the remaining duration.

Compliance with Laws and Regulations

Broader use provisions often include a requirement for the tenant to comply with all applicable laws, regulations, and permits related to their business activities. This ensures that the tenant operates in accordance with legal requirements and maintains necessary licenses and permits. Compliance protects both the landlord and tenant, as landlords are held liable for illegal activity conducted on its property.

Landlord’s Consent

A typical lease agreement will state that the tenant must obtain the landlord’s consent before assigning or subletting the premises. This provides the landlord with control over incoming tenants and the activities they intend to conduct within the leased space.

It’s important for both landlords and tenants to carefully review and negotiate broader use provisions to ensure that they align with their respective needs and expectations. Consulting with experienced legal professionals specializing in real estate or commercial leases can help parties understand the implications of these provisions and negotiate favorable terms.

The Impact of Broader Use Provisions on Landlords and Tenants

Broader use provisions in commercial lease agreements have a significant impact on both landlords and tenants. For landlords, these provisions help maintain control over the use of their property, protect their interests and the interests of existing tenants, and ensure compliance with zoning and regulatory requirements. They provide clarity on the permissible activities and restrictions, enabling landlords to safeguard the property’s value and mitigate potential risks.

On the other hand, tenants benefit from broader use provisions by having clear guidelines on how they can operate their businesses within the leased premises. These provisions provide a framework for expansion or modifications to their business activities, while also granting exclusive use rights in some cases. Overall, broader use provisions foster transparency, protect property values, and facilitate a harmonious landlord-tenant relationship by setting clear expectations for both parties.

Consult with an Experienced Real Estate Attorney

With broader use provisions, landlords can help ensure their tenants’ operations are in compliance with Arizona law, while also protecting the interests of all relevant parties. Investors should partner with an experienced real estate attorney who is familiar with landlord/tenant laws and how they can impact their investments. Gottlieb Law provides industry-leading legal representation for anyone involved in Arizona commercial real estate.  Contact our firm today at 602-899-8188 or schedule an initial consultation on our contact us page.