What Are the Different Types of Surrender Clauses in Commercial Leases?

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What Are the Different Types of Surrender Clauses in Commercial Leases?

A surrender clause is a typical part of a commercial lease and it refers to the duty of tenants to restore the leased premises to the same condition that it was when they originally leased the premises. While a commercial lease may permit tenants to modify or improve the leased property in order to accommodate their business operations, a surrender clause may require the tenants to effectively undo those changes and restore the property to its original state.

The specificity and requirements of surrender clauses can vary widely in commercial leases. As noted above, some surrender clauses can require tenants to completely restore the leased premises to its original condition. If tenants make major changes to the premises with the approval of the landlord, the surrender agreement in their lease might provide that the tenants will be responsible for the costs of any necessary changes, but that they are permitted to leave those changes intact at the end of the lease term, or leave the changes specified by the landlord intact.

Another variation of surrender clause may require the tenant to surrender the premises “as-is,” but place prohibitions on the tenant materially altering the premises in any way. Other surrender clauses simply require the tenant to leave the premises in “good condition.” Yet other commercial leases contain surrender clauses requiring that tenants leave the premises in “broom clean” conditions, which generally means that tenants have thoroughly cleaned and swept the premises and removed any trash.

Absent a surrender clause, common law requires only that tenants return leased premises to the landlord in the same condition as they were received, with the exception of regular wear and tear.

Williams Mestaz, L.L.P., will offer you comprehensive representation at all stages of your business dispute, including with issues arising from breaches of commercial leases and contracts. No matter what issues your case involves, we have the experience to get you the results that you are seeking. Contact our office at (602) 256-9400 and set up a time to meet with us today.

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