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  • Writer's pictureRenee Ervanian

The Devil Is In the Details

Updated: Jan 21


Focusing on

DETAILS OF A LEASE

may help create

SIGNIFICANT SAVINGS FOR TENANTS:


1] THE FREE RENT CONCESSION PERIOD.

In addition to base rental, the free rent concession period should include free parking, signage, rent tax and other monthly fees, free of charge. Although the free rental period depends on length of lease and financial strength of the Tenant, a few months of upfront free rent is considered standard in many leases.

2] CAPPING THE EXPENSE INCREASES.

The annual expense increases that a Tenant is responsible for should have an annual cap, such as five percent, and/or a cumulative cap over the entire term of the lease.

3] BUILDING AMENITIES.

Building amenities, designed specifically for the Tenant's use, such as a fitness center, Tenant lounge, conferencing facility and/or onsite storage units should be free of charge throughout the lease term.

4] TURN KEY TENANT IMPROVEMENTS.

Tenant improvements, provided by the Landlord, should be turnkey instead of a maximum dollar amount. If the Tenant improvements are turnkey, the Landlord pays the entire amount of upgrades. Keys and access are provided to the Tenant when upgrades are complete. If a maximum dollar amount is negotiated, the Tenant will be responsible for any overages that occur in the contractor work and cost of upgrades.


Renee Ervanian

602.330.7482


 


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