Commercial Office Lease Negotiation Checklist – Pro-Tenant

img_2262By:  Alejandro E. Jordan, Esq.

This Article provides you with tips to create a concise and effective negotiation checklist and the key points you should consider when negotiating a lease in a multi-tenant office building.

This Article also highlights key provisions you should pay close attention to often found in office leases.

At initial glance, a 20, 30 and sometimes 40 page commercial office lease agreement may seem daunting.  However, with a properly drafted checklist, a savvy negotiator can swiftly navigate this legal document by making sure that all of the key provisions of the lease have been accounted for (or at least, that you know what you are getting yourself into before you are bound by its terms).  A wise person once said, “Organization is the key to success.”

A good summary or checklist can be a useful tool for tenants to:

  • Keep track of on-going lease negotiations.
  • Quickly reference the key provisions in your lease.
  • Summarize the final key terms of your final executed lease.

checklist

 

 

 

 

A good idea is to prepare a summary chart of the following key lease provisions found on leases for a multi-tenant office building, such as:

  1. Important Dates – such as Commencement, Rent Commencement, and Expiration Dates
  2. Parties to the Lease Transaction
  3. Description of the Leased Premises
  4. Permitted Use of Premises
  5. Lease Term
  6. Security Deposit
  7. Base Rent
  8. Additional Rent
  9. Services Provided by Landlord
  10. Assignment and Subletting Rights
  11. Initial Build-Out Obligations
  12. Tenant’s Alteration Rights
  13. Repair and Maintenance Obligations
  14. Compliance with Laws Obligations
  15. Indemnification Obligations
  16. Limits on Landlord Liability
  17. Subordination
  18. Early Tenant Rights
  19. Rights After Casualty Loss or Damage
  20. Condemnation Rights
  21. Insurance Obligations
  22. Holdover Penalties and Surrender Obligations
  23. Events of Default
  24. Landlord’s Remedies
  25. Tenant’s Remedies
  26. Arbitration
  27. Estoppel Certificates
  28. Attorneys’ Fees
  29. Express Covenant of Quiet Enjoyment
  30. Notices
  31. Time of the Essence Provision
  32. Memorandum of Lease; Recording
  33. Broker Representation and Indemnification
  34. Governing Law
  35. Purchase Option
  36. Additional Space Option
  37. Terms of Guaranty
  38. Rules and Regulations
  39. Lease Exhibits and Attachments

jordanpascalesquare1About the Author

Alejandro E. Jordan is the Chair of the Jordan Pascale, PL’s Commercial Real Estate Law Group, with over a decade of experience in commercial lease negotiations for all property types, including office, retail, and industrial properties.   His broad base of knowledge allows him to stay ahead of the game and keep abreast of the latest real estate issues and trends.

Jordan + Pascale, P.L. law firm has over 20 years’ experience as advisors to foreign national and domestic real estate investors, real estate owners and tenants, developers, real estate investment companies, and ultra-affluent high net worth individuals. If you have any questions on whether a particular a commercial real estate transaction is right for you, need assistance in leasing or in analyzing due diligence on a particular opportunity, contact us at 305-501-2836 or visit us at www.JordanPascale.com for immediate assistance.  Our offices are conveniently located in Miami, Florida (Coral Gables), and service clients throughout the State of Florida.