Tenant Leases: Save Time & Money In The Leasing Process

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For both Office and Retail Leases, here are some key ways Tenants can save time and money in their lease negotiations:

  • Right Team:  Involve an experienced real estate broker early on in the process.  Brokers let you know the current rental rates, improvement allowances and other concession packages available in your market.  Engage a lawyer with significant commercial real estate leasing expertise to review your letter of intent (LOI) and lease draft.  Depending upon the nature of the project, an architect or space planner and permit expediter may also be needed.
  • Right Structure:  Before your LOI is signed, coordinate with your leasing team to make sure that the structure of your transaction addresses your critical business and operational issues.
  • Right Issues:  Once the business terms are finalized in an LOI, the lease review should (i) confirm the LOI points were properly incorporated, (ii) note any provisions that create unusual liability or risk to the tenant, and (iii) note any provisions that may impact your critical business and operational issues
  • Multi-Tasking:  To expedite the process, the tenant and its team should all work together.  While your attorney is reviewing the lease, your broker can pursue property specific issues (e.g., history of CAM costs), your architect can confirm the square footage, and your sign contractor can create a signage or façade rendering for landlord approval.
  • Ownership:  An experienced leasing team will help save time and money during lease negotiations, and a tenant who takes ownership of the process, and is involved and engaged will invariably achieve a satisfactory result.

Topics:  Letters of Intent, Real Estate Brokers, Real Estate Market, Tenants

Published In: General Business Updates, Commercial Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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