An important component of a lease negotiation is the Tenant Improvement (TI) Allowance offered by a landlord to build out new space or retrofit existing space. The TI Allowance is based on a number of factors: the condition of the premises, length of term, net rental rate, and the financial covenant of the tenant. For existing office space – one that has walls, doors, etc. because of a prior tenant,...
When is a thousand square feet NOT a thousand feet? When you are paying for your office space! Office space is leased by the square foot and too often tenants go to great lengths to negotiate the best possible rate per square foot without taking into account how the square footage is determined for the particular building and the specific office space. The Building Owners and Managers Association...
THE RESTORATION CLAUSE Most commercial leases contain a Restoration Clause whereby a Tenant could be obligated to return their premises to the Landlord in “base building” condition. This means that the Tenant would be required, at their expense, to remove not only their furniture and trade fixtures, but all leasehold improvements including walls, carpet, etc. and repair any damage from doing...
The list below introduces you to some of the more common lease clauses. Keep in mind, however, that every lease is unique and the terms of each lease will be defined within the lease document. “As is” Condition – Premises accepted by a tenant or buyer in the condition existing at the time of the lease or sale including all physical defects. Base Rent – Also commonly referred to as “Minimum...