Commercial Tenancy in Tacoma
When it comes to commercial tenancy in Tacoma, navigating the legal complexities can be overwhelming. Whether you are a landlord or a tenant, having a knowledgeable attorney by your side can make all the difference in protecting your rights and ensuring a fair outcome. The Tacoma commercial tenancy lawyers at Dickson Frohlich Phillips Burgess can assist you at various stages of the process, providing you with key legal support and advocacy at every step of the way.
As a business owner, you want to focus on running your operations smoothly without the added stress of dealing with legal disputes or lease agreements. A skilled attorney can guide you through the negotiation and drafting of lease agreements, ensuring that your rights are protected and that the terms are favorable to your business.
On the other hand, if you are facing issues with your landlord or tenant, having an attorney represent you can help resolve conflicts efficiently and effectively. From lease violations to eviction proceedings, an experienced attorney can provide the necessary legal experience to advocate for your best interests and reach a favorable resolution.
Common Types of Commercial Leases
When entering into a commercial lease agreement, it’s essential to understand the different types of leases that are commonly utilized in Tacoma. Each type of lease offers distinct advantages and considerations for both landlords and tenants. Understanding these variations can help you make an informed decision and protect your interests as a business owner.
One common type of commercial lease is the gross lease, also known as a full-service lease. In a gross lease, the tenant pays a fixed rental amount, and the landlord covers all operating expenses, such as property taxes, insurance, and maintenance costs. This type of lease provides tenants with predictability in their monthly expenses and simplifies budgeting. However, landlords may factor in these costs when setting the rental rate, potentially leading to higher overall costs for the tenant.
Another prevalent type of commercial lease is the net lease, which shifts some or all of the operating expenses from the landlord to the tenant. There are three primary variations of net leases: single net lease, double net lease, and triple net lease. In a single net lease, the tenant is responsible for paying property taxes in addition to the base rent. A double net lease includes property taxes and insurance costs, while a triple net lease requires the tenant to cover property taxes, insurance, and maintenance expenses. Net leases offer landlords the advantage of passing on operational costs to tenants, reducing their financial burden.
Lastly, a percentage lease is commonly used in retail spaces where tenants pay a base rent plus a percentage of their monthly sales. This type of lease allows landlords to benefit from the success of the tenant’s business, providing an additional revenue stream beyond the fixed rent amount. For tenants, a percentage lease can be a double-edged sword, as increased sales may result in higher overall expenses. It’s important for both parties to clearly define how the percentage rent is calculated to avoid disputes down the line.
Legal Issues Related to Commercial Leases
Commercial leases are complex legal contracts that govern the relationship between landlords and business tenants. Unlike residential leases, commercial leases are not heavily regulated and offer fewer protections to tenants, which means understanding the legal implications is important for both parties.
One of the most common legal issues in commercial leases is ambiguous lease terms. Vague language around rent escalations, maintenance responsibilities, or termination clauses can lead to disputes. Tenants may find themselves responsible for unexpected costs such as repairs, property taxes, or insurance premiums if these obligations aren’t clearly defined.
Another significant issue is lease duration and renewal terms. If a lease doesn’t specify renewal rights or conditions, a tenant may be forced to vacate or renegotiate under less favorable terms when the initial lease ends. Landlords, on the other hand, may face legal challenges if they attempt to terminate a lease early without valid cause.
Zoning and permitted use clauses also present legal challenges. If the lease does not align with local zoning laws or fails to specify permitted uses, the tenant can face legal penalties or be unable to operate their business as intended.
Dispute resolution provisions are often overlooked but play a critical role when conflicts arise. Whether the lease requires arbitration, mediation, or litigation will affect how disputes are resolved and how much they cost.
Finally, assignment and subleasing rights can become legal sticking points, especially if the tenant wants to sell the business or sublet space. Restrictions in the lease can prevent these actions or trigger penalties.
When a commercial property owner is leasing to a tenant, or whether a tenant is renting from a landlord, they need the help of a Tacoma commercial tenancy lawyer. When you hire a Tacoma commercial tenancy attorney at Dickson Frohlich Phillips Burgess, they can help with any of these issues.
Tacoma and Washington Laws That Apply to Commercial Tenancy
Commercial tenancies in Tacoma and throughout Washington State are governed primarily by Washington’s landlord-tenant laws, though they differ significantly from residential tenancy laws. In general, commercial tenants are presumed to be more sophisticated, so the law provides them fewer automatic protections—making it especially important that lease agreements are clearly written and well-understood by both parties.
One key element is that commercial leases are largely controlled by the terms of the contract, not by statute. This means issues like rent increases, repairs, maintenance, lease duration, and termination are all governed by what the lease states rather than default rules. Tacoma tenants and landlords must negotiate these terms carefully, as courts will typically enforce what is written, even if it appears one-sided.
That said, Washington law does impose some baseline requirements. For example, RCW 59.12 governs unlawful detainer actions, which landlords use to evict tenants who breach the lease. Additionally, Tacoma may impose local zoning and business regulations that impact how leased property can be used, which landlords and tenants must take into account.
Unlike residential tenants, commercial tenants are not protected by Washington’s Residential Landlord-Tenant Act (RLTA). This means they don’t benefit from rules about habitability or deposit handling unless specified in the lease.
How to Resolve Commercial Lease Disputes in Tacoma
Resolving commercial lease disputes in Tacoma requires a strategic and legally informed approach. Since most commercial lease terms are governed by contract rather than state statutes, the first step is to carefully review the lease agreement to understand each party’s rights and responsibilities. Many leases include specific dispute resolution clauses, such as requirements for mediation or arbitration, before taking legal action.
Open communication between the landlord and tenant can often resolve misunderstandings or minor breaches before they escalate. Involving legal counsel early in the process can also help clarify obligations and propose practical solutions that avoid costly litigation. When you involve a commercial tenancy attorney at Dickson Frohlich Phillips Burgess, they can proactively engage with the other party’s attorney early in the hopes of avoiding a costly and expensive lawsuit.
When informal negotiations fail, mediation can be a highly effective tool. It allows both parties to work with a neutral third party to reach a mutually acceptable resolution while preserving the business relationship. Arbitration may be required if stipulated in the lease and can offer a faster, more private resolution than court.
If no resolution can be reached through these means, litigation in Washington courts may be necessary. Common court remedies include eviction, enforcement of lease terms, or monetary damages.
Commercial Lease Litigation in Tacoma
Commercial lease litigation in Tacoma can arise from a variety of disputes between landlords and tenants, often involving significant financial and operational consequences for businesses. Common issues that lead to litigation include nonpayment of rent, breach of lease terms, failure to maintain the property, improper use of premises, or disagreements over lease renewal and termination clauses.
Unlike residential leases, commercial leases in Tacoma are primarily governed by the terms of the contract, not by tenant-protective statutes. This means courts will generally enforce the lease as written, even if it heavily favors one party. However, when disputes arise, litigation may be necessary to resolve contract ambiguities or address alleged breaches.
Landlords may pursue unlawful detainer actions under Washington law (RCW 59.12) to evict tenants who violate the lease, while tenants may sue for damages or injunctive relief if the landlord fails to meet obligations such as property maintenance or quiet enjoyment.
Given the complexity of commercial leases and the potential financial risks involved, litigation can become costly and time-consuming. Businesses facing lease disputes in Tacoma should consult an experienced real estate or commercial litigation attorney to evaluate their options and protect their interests through negotiation, mediation, or, if necessary, court action.
In a commercial tenancy lawsuit, the remedies available depend on the nature of the dispute and the terms of the lease agreement. Courts typically enforce the lease as written, so remedies are often contract-based.
For landlords, common remedies include eviction through an unlawful detainer action, recovery of unpaid rent, and damages for breach of lease. In some cases, landlords may also seek compensation for property damage or lost future rent if the tenant vacates early.
For tenants, remedies may include damages for landlord breaches, such as failure to maintain the premises or violations of exclusive use clauses. Tenants may also seek specific performance if the landlord refuses to honor lease obligations or even rescission of the lease in extreme cases when the landlord has acted egregiously.
In both cases, the court may award attorney’s fees if the lease provides for them. Because these disputes can be complex, legal representation is often essential to secure the best outcome.
How a Commercial Real Estate Lawyer Can Help Landlords and Tenants
A commercial real estate lawyer plays a vital role in protecting the interests of both landlords and tenants throughout the leasing process and beyond. Whether negotiating lease terms, resolving disputes, or ensuring compliance with local and state laws, legal guidance is essential in commercial real estate transactions where financial and legal stakes are high.
For landlords, a commercial real estate attorney can help draft clear, enforceable lease agreements that define rent terms, maintenance obligations, use restrictions, renewal rights, and remedies in case of default. This ensures the lease protects the property owner’s investment and reduces the risk of future disputes. If a tenant fails to pay rent or breaches the lease, the attorney can guide the landlord through Washington’s eviction process (unlawful detainer), handle notices, and represent them in court if necessary.
For tenants, a commercial lease lawyer can review lease terms to ensure fairness and protect against hidden liabilities, such as unexpected maintenance costs, excessive rent escalation clauses, or restrictions that limit business operations. Once you sign a commercial lease contract, you are bound by its terms, and there is the potential that you can be sued. A lawyer can also help negotiate more favorable terms during the initial agreement or renewal period.
In the event of a lease dispute, whether it involves rent, property condition, lease termination, or non-performance, a commercial real estate lawyer can represent either party in negotiations, mediation, or litigation. They can also assist in navigating complex legal issues such as zoning compliance, environmental regulations, or property redevelopment.
By involving a knowledgeable commercial real estate attorney early in the process, both landlords and tenants in Tacoma and throughout Washington can avoid costly mistakes, minimize risks, and position themselves for long-term success in their business ventures. Their legal knowledge ensures that contracts are sound, rights are protected, and disputes are handled effectively.
Contact a Tacoma Commercial Tenancy Lawyer at Dickson Frohlich Phillips Burgess
Whether you are a landlord or tenant, you need help from a Tacoma Commercial Tenancy Attorney at Dickson Frohlich Phillips Burgess. We can help you at various stages of the commercial tenancy process. You can speak to one of our commercial tenancy attorneys by visiting our website or by calling us today at (253) 572-1000.
Dickson Frohlich Phillips Burgess – Tacoma Office
Address: 909 A Street, Suite 900
Tacoma, WA 98402
Phone: (253) 572-1000
