A Tenant’s Guide to Commercial Lease Terms

Signing a commercial lease agreement can be one of your more significant responsibilities if you are a business owner. A complex yet highly important document, your lease agreement dictates not only how you can use physical space but also how your company’s brand, culture and production can grow. By working with a commercial leasing agent, you can take steps to better understand and secure a beneficial a commercial lease.

• Premises: A commercial lease agreement must include the dimensions or square footage of the premise being leased. Because commercial square footage can be measured according to different methods, take care to understand the precise square footage included in your agreement.
• Term: Your lease term is the time period during which you will have exclusive possession of the property being leased. Your commercial real estate broker can help you negotiate a beneficial term that allows your business the flexibility to target both your short and long-term goals.
• Repairs and Maintenance: When reviewing your commercial lease, clarify responsibilities for repairs to and maintenance of the property. The landlord is generally responsible for most of the maintenance and repair obligations that arise during the lease term, but locate the stipulations within the agreement to confirm and to avoid unanticipated fines or fees.
• Recapture Provisions: The term “recapture” refers to the landlord’s right to prematurely terminate a tenant’s rights under the lease. To help you avoid this scenario, your commercial real estate broker can locate and negotiate for the removal of any recapture provisions.

For more information about commercial real estate, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.

Commercial Real Estate Strategies: Negotiating Your Commercial Lease

Are you preparing to sign or renew a commercial lease agreement? Even if you are resigning an existing lease, be prepared to negotiate with your landlord on the terms of your agreement. Negotiating a commercial lease agreement can help you to achieve more advantageous terms and increased flexibility, positioning you and your company for long-term success. Learn more about successful commercial lease negotiations in this podcast from a commercial real estate broker.

In the podcast episode from 12/4/2009, a commercial broker discusses a few smart strategies for negotiation. Begin by performing a close read of the lease itself and look for points of vulnerability or disadvantage. Your exit terms, for example, will detail when your lease expires, any holdover penalties, and your renewal options. A tenant representative can also perform a lease review to clarify and analyze the terms and conditions of your agreement, providing you with the necessary knowledge for more successful negotiations.

For more information about commercial lease reviews and agreements, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.

Tenant Representation and Real Estate Advocacy: Resources for Further Reading

With tenants and landlords both negotiating for a better deal, navigating the commercial real estate waters can be a challenge. If you are a tenant in search of new office space, consider working with a commercial real estate broker to help you secure a space that works for you and on your terms. With an in-depth knowledge of the Denver market, Tom Pappas represents and advocates for tenants exclusively to help them make sound real estate decisions. For more information about commercial real estate, contact Tom and read through some of the resources below.

• Selecting an office space involves more than just measurements and having adequate meeting space. In addition to researching the location around the building, inquire about a building’s amenities, accessibility, and tenants. Learning more about your office space options can help you to avoid sharing space with a competitor and to create a comfortable space for employees.
• When renting commercial office space, tenants will find that the commercial lease agreement they sign dictates how much they pay and how much protection they have against the landlord. To help you interpret the terms and conditions of your commercial lease, have a commercial real estate broker review the lease and read more about commercial lease agreements.
• If you are a commercial real estate professional or someone looking for office space, refer to the resources provided by BOMA International. Setting the standards for commercial real estate assessment, the Building Owners and Managers Association also provides additional articles and statistics to help you make an informed real estate decision.

For more information about commercial real estate, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.