I’ve written before about how easy it is for a business to get caught out at the end of a lease by the ‘make good‘ provisions that require a property to be reinstated to how it was at the beginning of a lease.
Archive for the ‘Property Lease Negotiation’ Category
We hear so much these days about the benefits of collaboration and cooperation, but often it is the theory and not the practice we hear about.
I’m involved in the last stages of a great project that has been a successful collaboration between a building owner and a significant sized business to achieve a result of mutual benefit. (more…)
The first thing to realise when you are about to enter into a lease for a commercial property is that there is no such thing as a standard contract.
I get concerned that many individuals and organisations believe that commercial property leases are standard [they are not] and that any “standard” variations are simply the preserve of the landlord [they are not]. (more…)
Ratchet clauses in commercial property leases are something tenants love to hate.
That’s not surprising because the implication is that with a ratchet clause, rents always go up at the time of a rent review.
The ratchet clause in a lease is often that; a set in concrete element of the lease that means landlords can and will automatically ratchet up a rental when it is time for the lease to be reviewed. Just this week I (more…)
I’m predicting the commercial tenancy market is about to become a bloody battlefield as times get really tough for investors and landlords managing commercial property portfolios.
There are five key factors that will cause this warring between landlords.
The commercial rental property market in New Zealand continues to be very much a tenant’s market… but there are many landlords who simply don’t get it.
It amazes me in the many negotiations I conduct for clients how many landlords take such a short-term view and, by playing hard ball, lose out on securing long-term tenants. (more…)
You’ve heard the phrase “stating the obvious”. But when it comes to lease agreements it is interesting to consider how often we haven’t done just that; state the obvious.
The reason I mention this is that ambiguity in lease documents is the greatest cause of disputes between tenant and landlord. And sometimes (more…)
Subleasing or assigning space in commercial property is an area of great interest to commercial tenants right now.
More and more commercial tenants are finding they would like to sublease or assign space that has become surplus to their requirements. (more…)
The ratchet clause has long been a dirty word to businesses with commercial tenancies.
More than 95 percent of leases have a ratchet clause. Traditionally they never advantage the tenant. (more…)
Real estate agents for most of us are the people we love to hate. A necessary evil perhaps; to others they are to be avoided like the plague.
The reality is (more…)
In today’s volatile economy, I’ve noticed some old wisdom coming to the fore. As everyone searches for answers, some standard old fashioned approaches are proving to be wise counsel.
For instance, the old saying “Don’t cut off your nose to spite your face” comes to mind.
It’s been my experience in many years of property lease negotiations that competitiveness, combativeness, (more…)
I’ve been getting a number of emails and calls from people wanting some tips on how to get out of a commercial property lease.
I won’t pull any punches. It is (more…)