Industrial commercial property agreements in New Jersey may seem straightforward at first glance. Beneath the surface lies an important element that demands attention.
Restrictive clauses within the contract impose limitations on how you can use the property. Understanding them is necessary to safeguard your interests.
Guarding against unforeseen restrictions
Before signing any commercial property agreement, delve into the fine print to uncover potential restrictive covenants. These constraints could dictate important details. They can include the type of business activities allowed on the premises to alterations you can make to the property.
Preserving your business flexibility
The dynamic landscape of commerce, adaptability is a prized asset. Restrictive covenants might curtail your ability to evolve your business. For instance, a covenant restricting changes to the external appearance of the property could hinder your branding efforts.
Mitigating future disputes
An understanding of restrictive covenants serves as a preemptive measure against potential disputes. You can avert disagreements that may arise down the road by proactively identifying and negotiating these constraints during the initial agreement. This foresight contributes to a more amicable and stable landlord-tenant relationship.
Aligning with zoning regulations
New Jersey’s zoning regulations play a role in shaping the permissible uses of commercial properties. Restrictive covenants often align with these regulations. This ensures that your business activities remain compliant with local laws. Alignment can prevent legal complications and foster a harmonious coexistence within the community.
Industrial vacancy rates in New Jersey increased by 3.1% in the second quarter of 2023 and will likely continue to rise. That may make it a prime time to find secure a commercial space. Due diligence beforehand helps minimize potential trouble down the road.