How to Craft a Flexible Lease

How to Craft a Flexible Lease

Even if you have a clear vision for your company and a smart strategic plan to help you get there, the future is unpredictable. The office space that’s ideal for your needs today could end up being a less-than-perfect fit before your lease expires. Making your office lease as flexible as possible is a way to hedge against this unpredictability. Here are a few of the ways that you can create a more flexible lease: Consider a Shorter Term “Short-term” lease is a relative term. For a tech startup it might mean month-to-month. For an established law firm it might…
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WATCH OUT!…THE DEVIL’S IN THE DETAILS

The Restoration Provision When reviewing a multipage, landlord-centric commercial lease it’s easy to get glassy-eyed and often overlook seemingly harmless language. The restoration provision, usually tucked away under the Surrender of Premises Clause in your lease, is a perfect example and could be a potential tripwire hiding in plain sight. It’s a legal obligation for a tenant to restore, at the landlord’s request, the premises back to the condition it was in before you moved in or remove alterations and improvements as the landlord sees fit. This could be a very expensive parting gift to your landlord should they exercise this…
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Signing a Lease for Commercial Space? Follow These Tips

Many times, finding the right space for your business is the easy part. Negotiating a commercial lease, on the other hand, can be quite difficult. Follow these basic guidelines to avoid signing the wrong lease.     1. Consider the Length of the Lease Keeping you in your space for a longer period of time is something landlords encourage because it’s advantageous for them. There are some instances where a longer term lease is a smart business decision for your company - you may be able to save big on your monthly rent. On the other hand, signing a lease…
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Questions to Ask Before Choosing Your Commercial Real Estate Advisor

 Choosing a commercial real estate broker/advisor to serve as your tenant representative can be a challenge. Asking the right questions can help determine whether or not a broker is a good fit for you. Here are six good ones and some guidance on what to look for. 1. Does your firm focus exclusively on tenant representation or do you also represent landlords? If the answer is “we represent both” then there is an inherent conflict of interest. To insure that your best interest aligns with that of your advisor, choose a firm that focuses exclusively on representing tenants. This eliminates any…
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The 3 Most Commonly Used Leases in Commercial Real Estate

There are 3 basic types of leases used in Commercial real estate. They are all complex documents but can be understood when you have some background about the terminology associated with each of them. The three types of leases are: 1. Gross Lease  With a gross lease, also known as a full service lease, the rental rate includes all of the operating expenses for a property, such as the utilities, maintenance, property taxes and property insurance. If these expenses increase over the term of the lease, the landlord typically passes through the incremental cost to the tenant as “additional rent”. Many…
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Should I Stay or Should I Go?

  As the life cycles of businesses mature and grow over time it becomes necessary to re-evaluate your office space when your lease is coming up for renewal. Square footage requirements factor as just one component of the decision process to remain where you are or look for new space. A comprehensive evaluation also includes the following issues in today’s modern business atmosphere and serve as a guide to stay or go. 1. Are You Using Your Square Footage Efficiently? Take a hard look at where your business is now and where it’s likely to be in 5-10 years. Do…
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A Simple Guide to Leasing Commercial Real Estate

Whether you're getting ready to move to a larger office space or planning to add a second, third, or fourth location to your portfolio, there is a lot to consider when it comes to commercial real estate leasing. Keep the following tips in mind as you move through the process to ensure the best outcome and make the process as smooth as possible: 1. Start the Process Early The search and negotiation for commercial real estate takes much longer than most companies think. Ideally, depending on the size of your requirement, you should begin thinking about your next move at least…
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