THREE LEASE CLAUSES PHOENIX TENANTS REGRET NOT NEGOTIATING EARLIER.

Phoenix office, industrial, and medical tenants do not lose money on the base rental rate, clearly printed in the lease. The losses show up in lease clauses that were not negotiated. After negotiating hundreds of leases across the Valley, three patterns emerge again and again, each one draining dollars from tenants who thought they had a fair lease. The patterns cost tenants unexpected dollars and surprise obligations.

OPERATING EXPENSE PASS-THROUGHS (OPEX). Many tenants assume CAMS are fixed. They are not. The tenant needs to negotiate caps, audit rights, and exclusions. Capital expenditure language should be reviewed.

RENEWAL OPTIONS. If a tenant does not include a lease renewal option in their lease, they risk a neighboring tenant expanding, the building being sold to an owner/user who will occupy their space, or other unexpected situations. Even if lease renewal is unlikely, the renewal clause should be included.

RESTORATION OBLIGATIONS / RETURN OF THE SECURITY DEPOSIT. The tenant is expected to leave the empty suite in clean condition, with normal wear and tear. The Security Deposit should be returned within a short time frame after lease expiration. Unnecessary charges that chip away at the deposit refund are typically unnecessary.

COMPLIMENTARY BEST OPTIONS REPORTS: Renee Ervanian / Managing Broker https://www.corecommercialllc.com

renee@corecommercialllc.com

602 330 7482

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