The Time Factor: Many unforeseen factors can contribute to a “time drain” when negotiating a commercial lease. Negotiations can often be completed in as short a time as one week when companies with prior experience partner with a knowledgeable tenant representative. Failure to reach an agreement on leasing terms and/or counteroffers, or attempting to coordinate effective dates between vacating a prior location and occupying the new, can often cause delays of weeks or even months.
Miscalculations involving the time required to obtain building permits allowing renovations or a delay in the completion of architectural plans, and new construction delays, are other factors affecting final lease negotiations and move-in dates.
These time factors need consideration, and reasonable forecasts must be developed once the site is selected. The lease should have a clause that will provide for an extension acceptable to tenant and owner in the event of delays of a particular nature which could impact the move-in date, and incorporate a guaranty that all building systems; heating, air conditioning, plumbing, etc. will be functional over the entire term of the lease.
Long Term Priorities: Planning for expansion and incorporating those needs into the leasing agreement is of utmost importance, since without such actions a costly and disruptive relocation might be required.
Tenant Representation Services: VIP Realty, a firm experienced and specialized in tenant representation, assures that clients are made aware of all comparable facilities suitable for their business, and will aid the client in the complex process of examining the pros and cons of each to assure that the most appropriate location is chosen.
VIP Realty’s clients can be confident that they have engaged a representative that will negotiate for the most favorable leasing conditions, lease clause protections and incentives, at the lowest cost, and be assured that VIP Realty’s representation will offer an effective counterbalance to owner representatives.
When VIP Realty represents a client, the client can be assured that we will assist in the negotiating of all aspects of the leasing agreement until finalized, such as landlord contribution to build-out costs, space improvement, future rent increases and limits, before and after lease commencement, etc.
Our representation is at no cost to our clients, since both the listing agent and the tenant’s agent’s fees are paid by the owner, exactly the same as in a residential building transaction.
Outside Incentives: Our clients are made aware of the fact that, under certain conditions, economic incentives may be claimed from local government, such as tax rebates, relocation assistance, infrastructure improvements and the like. These incentives are often most economically substantial and should not be overlooked.
Facility Build-Out: A build-out agreement to be performed by the owner, whether incorporated into the lease, or as a separate add-on document should contain assurances that the landlord will assume all costs, including delays not caused by the tenant, and the costs involved in correcting flaws in the building structure uncovered during the build-out, and any and all unexpected repairs required during construction.
Lease Flexibility: A “Use Clause” incorporated into the lease should be most carefully constructed since this clause will accurately describe the goods and services to be provided by the landlord and the responsibility for goods and services that are assumed by the tenant. Additionally, and of extreme importance to the tenant, is the scope of flexibility allowed within the terms of the lease in the event of company growth, or the need to downsize.
Location: Among the many valuable services that VIP Realty offers its clients is our extensive knowledge of local markets. This knowledge is an invaluable aid to our clients in helping to avoid the serious mistake of choosing a location in a declining area, or a building with outmoded facilities that can hamper the installation of high-tech equipment. Such a mistake could prove disastrous to a company dependent on such technology. VIP Realty’s consultation and guidance can prevent our clients from making the wrong relocation decisions, such as sacrificing a superior location in favor of a lesser location of lower cost.