Comments on: How to Avoid Being Ripped Off When You Lease Office Space, Part III

By: Ryan Roberts

Ryan Roberts — Thu, 31 Dec 2009 08:57:54 +0000

I wouldn't say it's "Customary" but some states also have statutory landlord's liens.

By: Ryan Roberts

Ryan Roberts — Thu, 31 Dec 2009 08:57:00 +0000

I wouldn't say it's "Customary" but some states also have statutory landlord's liens.

By: K

Mon, 21 Dec 2009 11:28:36 +0000

Is it a customary to include a property lien on a lease?

The lease I am negotiating also has me reponsible for the plate glass. Is that reasonable? I do have insurance coverage for such but there seems to be limitations associated with plate glass coverage with regards to the insurance plan.

By: K

Mon, 21 Dec 2009 11:28:00 +0000

Is it a customary to include a property lien on a lease?

By: Ryan Roberts

Ryan Roberts — Fri, 01 May 2009 11:45:03 +0000

Not sure what you are asking. "Successors and Assigns"?

By: Ryan Roberts

Ryan Roberts — Fri, 01 May 2009 11:45:00 +0000

Not sure what you are asking. "Successors and Assigns"?

By: LK

LK — Thu, 30 Apr 2009 20:59:11 +0000

what is it called when you are protected to continue your office lease in a building and the building is sold

By: L.J.

L.J. — Fri, 27 Feb 2009 14:23:56 +0000

Thanks for the info. I noticed you did have information on what the tenant's obligations would be in the event of damage to the building. I was wondering what would happen to a tenant's contract if the building is sold. I was considering renting office space in a building, but found a for sale ad indicating that this property is for sale. This landlord seems easy-going, but what happens if the building changes ownership?

By: L.J.

L.J. — Fri, 27 Feb 2009 14:23:00 +0000

By: Ryan

Ryan — Fri, 20 Jun 2008 17:31:42 +0000

Matt-

As to the property taxes, you are right in that it's very common for the tenant to pay for their pro-rata share of the property taxes. And negotiating that may be non-starter from the landlord's perspective.

As for the HVAC, I always advise my clients to not be responsible for HVAC maintenance. (1) You are assuming the risk for something that may have not been maintained by a prior tenant (or the unit you lease could just have a dud HVAC system) and (2) the landlord is in a much better position to maintain all the HVAC units of the facility so they are in working order.

I assume that your last question is about paying for the HVAC system when you are going to lease a brand new building or shell space that hasn't been built out yet. In that case, I have seen tenants have to pay for the HVAC unit. The key is to get enough of a tenant improvement allowance to cover that and the rest of the buildout. The problem is that you have to price out all the HVAC and other to-be-installed improvements BEFORE you negotiate your tenant allowance.

By: Ryan

Ryan — Fri, 20 Jun 2008 17:31:00 +0000

Matt-

By: Matt Walton

Matt Walton — Thu, 19 Jun 2008 23:08:47 +0000

In all of the offices I have leased, I have always had to pay my pro rata share of property taxes. From what I hear from you, I should not have to pay property taxes? You also advise not to be responsible for maintenance of HVAC…should I interpolate that to mean also that the landlord should pay for the HVAC unit itself?

By: Matt Walton

Matt Walton — Thu, 19 Jun 2008 23:08:00 +0000

By: Cheryl's Desk

Cheryl's Desk — Mon, 11 Feb 2008 05:03:24 +0000

I have been caught in a fight with my office space landlord regarding the improvements he promised. We are now six months into our lease and the landlord refuses to finish the improvements. How do I get the landload to complete his side of the bargan?

By: How to Lease a Medical Office | The Health Care Lawyer

How to Lease a Medical Office | The Health Care Lawyer — Sat, 26 Jan 2008 05:09:44 +0000

[...] wrote a series of articles about tips and suggestions on how to lease office space at one of my other legal blogs, The Startup Lawyer. For the most part, these general suggestions [...]

By: Ryan

Ryan — Mon, 19 Nov 2007 01:38:26 +0000

LC,

You bring up some good points.

I agree that a lot of lease negotiation and construction depends on what's customary to the city, state, or regional area. In Texas, landlords seem to not offer gross leases on spaces larger than 1,500 square feet. In California, the landlords I have dealt with seem to be worried more about insurance increases than property tax increases, making it easier to get caps on the latter.

A landlord and tenant can squash a lot of these issues by simply having a gross lease; it would end the issues of CAM charges and calculations, lease audits, etc.

By: Ryan

Ryan — Mon, 19 Nov 2007 01:38:00 +0000

LC,

You bring up some good points.

A landlord and tenant can squash a lot of these issues by simply having a gross lease; it would end the issues of CAM charges and calculations, lease audits, etc.

By: LC

LC — Thu, 15 Nov 2007 05:59:56 +0000

[Property Taxes. You’re already paying off the landlord’s mortgage, so some landlords get greedy and have you pay the building’s property taxes as well. Be sure that property taxes aren’t a part of the CAM or other charges you have to pay.]

As a commercial developer I would have to disagree with this statement. Although in our region most office buildings are leased with a “gross lease,” the taxes along with other operating expenses are in fact a part of the rent and there is usually an annual escalator clause.

In our shopping centers, in ALL cases the taxes are part of the CAM as they are “net leased” properties and the tenant is responsible for all operating expenses.

Nice article, however; the topic is appreciated even though I’m a landlord!