At Legal Sandbox Georgia, our approach to commercial leasing merges advanced market analytics with strict legal protection. For businesses seeking retail or office space, we begin with a comprehensive trade potential analysis. This involves studying traffic flows (footfall and vehicular), demographic catchment areas, and competitor density in specific Tbilisi districts. We utilize this data to validate the rental asking price against the actual revenue potential of the location, identifying high-rental risks where the overhead costs might outweigh the commercial benefit. We also negotiate commercial terms beyond just the base rent, securing critical concessions such as rent-free fit-out periods, contributions to Capital Expenditure (CAPEX) for renovations, and clear definitions of Common Area Maintenance (CAM) fees to prevent hidden operational costs.
From a legal perspective, we draft and negotiate the Commercial Lease Agreement to ensure robust protection under the Civil Code of Georgia. Standard landlord templates often lack essential safeguards for tenants; therefore, we implement precise clauses regarding rent indexation (pegging rent to exchange rates or inflation with caps) and clearly define Force Majeure conditions to protect your business during unforeseen disruptions. We rigorously structure the termination clauses to avoid punitive penalties for early exit or "break options," while also securing renewal rights (pre-emption rights) to ensure business continuity.
Crucially, for any lease term exceeding one year, Georgian law requires registration with the National Agency of Public Registry (NAPR) to be valid against third parties (e.g., if the building is sold to a new owner). We oversee this registration process to ensure your right of possession is absolute. We also advise on the tax implications of the lease, specifically regarding VAT (18%) liability and Withholding Tax obligations if renting from a non-entrepreneurial individual, ensuring your lease structure is fully compliant with the Tax Code of Georgia.
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