Landlords have recently become more aggressive in trying to shift some of the costs of insurance that they traditionally carried onto their tenants. In a large commercial building, the cost of all of these policies can be significant. Essentially, the insurance requirements increase the cost of leasing space. Tenants should be wary of the extra costs these insurance requirements can impose.
In the real estate business, it’s no secret in Manhattan that when you get out into the boroughs or suburbs, the quality of the landlords changes quite dramatically. It’s not true of all landlords, but there is a definite mindset that begins to take hold as soon as you cross the Hudson or East River: Tenants are a necessary evil, not valued customers.
In the previous post, we discussed subleasing, assigning, desk-sharing and the option to cancel as some of the remedies a business might use to get out of a lease. In this post, we discuss the least desirable ways to get out of a lease: buyout and litigation.
“Getting out” of a lease for a business is usually a last resort, but sometimes a necessary one. The good news is that there are methods available to expedite an early out. Planning before the lease is signed is essential. Inability to pay the rent isn’t the only reason a tenant may need to break a lease. It may be more important if you are very successful and need larger space. Here are the lease clauses and methods to consider:
When a company comes to us looking for the perfect space from which to operate and grow their business, we have 5 major factors that we take into account. These 5 key considerations can either greatly enhance or detract from the properties that we evaluate.