The manner in which we live and conduct our day to day business has been drastically altered by the COVID-19 pandemic. The economic repercussions we face as we social distance to prioritize everyone's health and safety will be profound. Particularly with the state-mandated shutdown of non-essential businesses. A recent Chamber of Commerce survey concluded that [...]
A lease agreement's force majeure provision can do any of the following. It could excuse contractual obligations in their entirety if they can't be met due to a force majeure event. It could delay or defer said obligations until the conclusion of that specific force majeure event. And, in extreme instances, it can allow for [...]
Sometimes the tenant improvement allowance offered isn't enough to cover every improvement or upgrade the space needs. When this happens, you really only have two choices. You can either pay out of pocket to afford the build-out you've envisioned or you can be creative when it comes to getting the most bang for your buck. [...]
Small-to-medium sized businesses (SMBs) make far too many mistakes when renting or leasing a commercial space. In this post, we'll outline several key mistakes SMBs make. Rental and lease payments are one of the top expenses incurred by most SMBs. Making a mistake early-on in this process can be devasting to a businesses bottom line. [...]
When searching for your ideal workspace, it's practically impossible to find exactly what you want in ready-to-move-in condition. Most spaces will require some type of office buildout. Sometimes it may be nothing more than some new carpet and paint. Other times it may involve knocking down some walls, building new walls, or other major renovations. [...]
In most office lease agreements, landlord consent is required for tenant transfers such as subleasing or assignments. There are a few exceptions where it might not be. One is "Permitted Transfers." This is where a tenant can sell their business, bring on another business partner, or sublease the space to an affiliated entity without landlord [...]
A landlord's tenant improvement allowance is intended to incentivize a prospective tenant. But how much TI allowance a tenant is offered varies based on several factors. Here are a few things assessed prior to a landlord's TI allowance offer. Tenant's Credit Strength Any experienced landlord will carefully consider a tenant's credit strength. Landlords will often [...]
Mistakes happen but making a mistake during lease & tenant improvement negotiations can be costly for any small to medium-sized business. This YouTube video looks at five common yet preventable mistakes to watch for when looking for a new commercial space, negotiating or renewing a lease, or agreeing to a tenant improvement allowance. There's an [...]
Cell phone providers like T-Mobile or Sprint will sometimes pay a prospective customer's cancellation fee to get them out of their current deal and into a new contract. Auto dealerships often have "No Money Down!" promotions. These are called incentives. In commercial real estate, a tenant improvement allowance (TIA) is a similar type of incentive. [...]
A tenant improvement allowance (TI allowance) typically sounds great when first presented. The landlord agrees to reimburse the tenant a portion of the costs of any improvements or buildouts needed for them to move into a space. However, be cautious prior to signing a lease and binding yourself to TIA terms. Tenant expectations often differ [...]
