Craft Beer Professionals12 Mar 2025

Brewery Leases: Key Provisions and Practical Tips

One of the most important legal contracts in the early life of a brewery is the lease. In this presentation, attendees will gain an overview of the negotiation process for a brewery lease, starting with the letter of intent all the way through to execution. The discussion will include the types of commercial leases, key provisions (both generally and specific to a brewery business), and practical tips for negotiation and dealing with disputes (in particular, disputes as to noises or odors). You will learn about "gross" vs. "triple net" leases, CAM charges, how to deal with payment for utilities, and dealing with issues such as HVAC repair and replacement. Other topics of discussion will include what protections can be included in the event that the brewery goes out of business to protect any guarantors, dealing with complaints from neighboring tenants, what’s reasonable in terms of rent abatement in the early months of the lease term as well as tenant improvement allowances. In the later years of the lease, issues such as options to renew or purchase and/or rights of first refusal may be relevant, and, in the event that your brewery decides to relocate at the end of its lease, how to deal with termination issues including removal of equipment.

Primarily a business attorney with a focus on corporate transactions, Jeffrey O'Brien regularly oversees mergers, acquisitions, joint ventures, and private securities offerings. He also frequently handles ancillary real estate deals, including commercial leasing, land acquisition, loan documentation, purchase and sale of residential and commercial property, and resolution of title matters, and is a Minnesota State Bar Association Board Certified Real Property Specialist. While Jeffrey supports clients in a variety of industries, he has built a strong niche practice in the hospitality realm, often representing restaurants, bars, and breweries. After cannabis was partially legalized in Minnesota in 2023, he began representing businesses in the burgeoning industrial hemp and cannabis industries as well and has become a leading attorney in the Minnesota cannabis world. Jeffrey is licensed to practice in the States of Minnesota, Iowa, North Dakota, South Dakota & Wisconsin.

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