In general a company should allow anywhere from four to twelve weeks to identify a new facility, negotiate business points and legal terms, and move-in. This schedule is highly dependent on the specific search being conducted and can vary based on any of the following: availability of product in the market, scope and duration of work to be completed by the owner or tenant, complexity of the requirement and size of the company performing the search. A good rule of thumb is to start earlier rather than later.
Commercial Lease Legal Issues
Leasesquarefeet.com strongly recommends that you read your commercial lease thoroughly and that you consult with an attorney prior to entering into any commercial real estate lease agreement.
Commercial Lease Business Points
In most leases there are several areas that may affect your companies bottom line now and in the future. These include but are not limited to:
- Operating Expenses-Charges associated with the operation of the property. Costs typically “passed through” to the tenant or lessee include: common area maintenance or CAM, property taxes and insurance.
- Holdover Rent-Provision in a lease that specifies the amount of excess rent an owner may charges should the tenant remain in the lease space beyond the expiration of the lease term.
- Fire & Casualty Provisions-Terms within a lease that govern what rights the landlord and tenant have in the event of an fire or other casualty. For example this section will specify the number of days a landlord may take before deciding whether or not to rebuild the structure AND the amount of time he or she may take to actually complete the repairs.
- Landlord’s Lien-Landlord’s claim on the property of the entity identified as the tenant or lessee on the lease. Typically found in commercial leases unless negotiated otherwise.
- Landlord Fees-Provisions in a lease that allow the owner of the property to pass through costs associated with either managing the property or the construction process within a tenant’s lease space. Fees are typically mandatory unless negotiated otherwise.