20 Critical Tips for Retail & Office Tenants

1. Define and understand your needs before you start your search.

2. Put your emotions aside when looking for space, the key is to clearly define your usage, budget and location. Be flexible on the rest.

3. Start your space search early; maximum six months, minimum 3 months.

4. Survey the market, look until you have 2 or more options for space. Negotiate from strength.

5. Read the lease prior to signing. Also, read the Rules and Regulations, they can affect your day to day operations.

6. Understand the Lease Insurance Clauses. Name additional insured? Liability for employees and company? Need for comprehensive insurance? Involve your agent.

7. Get all of the space for which you are paying: Apply BOMA standards of measurement.

8. Abatement: Make sure that your lease states that your obligation to pay rent stops (the legal term is "abates") during the time you are denied reasonable use of, or access to, your space.

9. Clearly understand the fees connected to the Common Area Maintenance (CAM) and methods of increase.

10. Ask for the right to fix a problem when your landlord does not offset your costs against future rent.

11. Carefully review operating issues: hours, noise, odors, etc.

12. Consider your options to extend the lease term (pre-stated or arbitration).

13. Consider tenant right to written Notice and Opportunity to Cure any default.

14. Check that the landlords consent will not be reasonably withheld, when required.

15. Security Deposits: Use cash, letters of credit or alternative guarantees.

16. Upon lease termination, tenant to require landlord to qualify that ...with normal wear and tear and any damage by casualty excepted... and this phrase be included in the lease.

17. Notarization: Check to make sure if the landlords signature must be notarized, this usually occurs on longer term leases.

18. Relocation: Understand that lease often include the right of the landlord to move your company to another space.

19. Never rely on personal trust. Think it through, study the details, get it in writing.

20. Level the playing field: Hire a broker, employ an experienced tenant representative to understand your needs and help to avoid pitfalls.