A new Philadelphia ordinance mandates that specific disclosures be made by a landlord when entering into any commercial lease.

The ordinance, which took effect on March 26, 2022, adds Chapter 9-5700, entitled “Leasing of Commercial Property,” to Title 9 of The Philadelphia Code, concerning the “Regulation of Businesses, Trades and Professions.” 

The law prohibits landlords from entering into lease agreements for commercial properties unless and until (a) landlord delivers to tenant the City’s form of Commercial Leasing Notice, and (b) landlord and tenant execute the Confirmation of Receipt.

There are limited exceptions to this requirement if (a) the parties agree in writing or (b) tenant is represented by a licensed attorney or real estate broker. This law provides tenants with a private action against any landlord who fails to comply with these requirements. 

For further information on this subject, or leasing commercial properties in the City of Philadelphia, please contact Rob Gundlach at 215.918.3636 or RGundlach@foxrothschild.com.