Los Angeles Commercial Leases

Unlike standard office tenants, dental practices have specialized needs, including custom buildouts, plumbing and electrical upgrades, and equipment that represents a significant financial investment. Once a dentist commits to a space, relocating is costly and disruptive. That makes it essential to secure lease terms that provide flexibility, security, and legal protection from the very beginning.

Without the right legal guidance, dentists risk signing agreements that limit their growth, increase costs, or expose them to unnecessary liability.

Landlords in Los Angeles often present “standard” leases, but these documents are typically written to heavily favor the property owner. Dentists must approach negotiations strategically to ensure their interests are protected.

Key issues in negotiation include:

• Base Rent and Increases: Clarifying how rent escalations are calculated over time.
• Tenant Improvements (TI): Securing landlord contributions toward dental buildouts and renovations.
• Maintenance and Repairs: Allocating responsibility for ongoing costs associated with equipment, HVAC systems, and structural upkeep.
• Personal Guarantees: Limiting or avoiding personal liability for lease obligations.
• Default and Remedies: Protecting the tenant from overly harsh landlord remedies in case of a dispute.

Polished Legal negotiates with landlords to balance the scales and ensure lease agreements reflect the realities of dental practice operations.

The term of a lease—its duration and renewal rights—can significantly impact a practice’s value and stability. Common options include:

• Short-Term Leases: Provide flexibility but may create uncertainty for long-term planning.
• Long-Term Leases: Offer stability but require careful attention to renewal terms and rent escalations.
• Renewal Options: Allow practices to extend occupancy at predetermined terms, preserving location stability.
• Early Termination Clauses: Provide exit strategies if the practice needs to relocate or expand.

Selecting the right lease term is a strategic decision that should align with practice growth goals and financial planning.

Practices evolve over time, and lease terms may need to evolve with them. Common modifications include:

• Adding or Expanding Space: Negotiating additional square footage to accommodate growth.
• Lease Extensions: Securing favorable renewal terms before the current lease expires.
• Sublease or Assignment Rights: Preserving flexibility to transfer the lease during a practice sale.
• Rent Adjustments: Modifying rent obligations in response to market changes or unexpected events.

At Polished Legal, we review modification requests and ensure extensions or amendments are documented in ways that protect the practice’s long-term interests.

Every commercial lease should include provisions that shield dentists from unnecessary risk. Important protections include:

• Exclusive Use Clauses: Preventing landlords from leasing nearby spaces to competing dental practices.
• Relocation Clauses: Avoiding landlord rights to move the practice to another suite, which could harm patient retention.
• Assignment Rights: Ensuring flexibility in the event of a practice sale or transition.
• Compliance with Healthcare Regulations: Addressing OSHA, HIPAA, and waste management responsibilities within the lease.

Without these protections, dentists may find themselves locked into unfavorable conditions that harm the value of their practice.