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How to avoid landmines in leasing a commercial space

November 11, 2017

This may be lease number 1, 2, or 3 for you, but one of hundreds for the landlord. Both parties to a lease will endeavor to structure the terms in their best interests, and your relative inexperience will be a major disadvantage. 


For example,


you may think that you’ll get the best deal if you agree to a longer term lease. But any concessions offered by the landlord will be baked into the lease’s value. 


Additionally, tenants often underuse their space for a significant portion of the lease term. Instead, consider flexible options offered through platforms such as LiquidSpace.


If you signed a demolition clause you may have signed your five-year lease with option to renew goodbye. If your building has a redevelopment potential, the owner may be tempted to sell it to a developer. If you want to make sure it's unbreakable, run it by a commercial leasing realtor first.

To level the playing field, tenants should strengthen their position by seeking advice from their lawyer, accountant, and broker.

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