Are you thinking about leasing a new commercial building or office space? Before you do anything else, review your current lease!
Check for Restoration Provisions: Your existing commercial lease will spell out the obligations that relate to the maintenance and/or demolition of your current space. If the landlord is hoping to reuse parts of your existing space, the lease will contain language designed to minimize the damage caused during your move. If the landlord is intending to demo the space, the lease might contain language requiring the tenant to pay for the removal of certain items.
Check for Holdover Provisions: Holdover provisions require the tenant to pay damages to the landlord if the tenant remains in place after the lease term expires. In general, these damages range from one and one half to double the rent being paid at the expiration of the term.
Review Your Lease Extension Options: Your lease may contain an option to extend. If so the terms of the extension are often at “fair market value”. Having an extension option is important because it can prevent the landlord from leasing your space out from under you if you wish to remain in the space. You should review your lease well in advance of expiration because options to extend usually require the tenant to give a significant amount of advance notice to the landlord prior to lease expiration.
Review Your Landlord’s Right to Show Your Space: Your lease may specify that as the expiration approaches, the landlord has the right to show the space to new prospects. Typically this process starts six to twelve months’ prior to expiration. Look for provisions that require the landlord to give you notice prior to the time your space will be shown in order to minimize disruption to your business.
If you have any questions regarding leasing commercial real estate in Tampa or St Petersburg, Florida please do not hesitate to reach out to us. Mobiliti CRE is a leading provider of commercial real estate services specializing 100% in tenant representation. For assistance contact Pam at (813) 300-3337 or email pam@mobiliticre.com