Negotiating a commercial lease includes meeting many important deadlines. Yet of all the dates involved in the leasing process, a commercial lease negotiations company knows that some are more important than others, and missing them can leave tenants without important and beneficial options and concessions. To avoid losing out on these benefits or defaulting on any lease terms, tenants must keep track of these deadlines so they are not overlooked.
Rent Adjustment Dates
Rent increases and other adjustments to the base rent typically occur on a yearly basis, usually beginning one year from the lease commencement date. Tenants should know the commencement and termination dates of their lease, monitor when any adjustments are likely to occur, and be prepared to negotiate before then. This important time is also when landlords will pass along any increases in operating expenses or even issue credits if operating expenses were lower than anticipated within the current rental period.
This is also the time to audit the landlord’s expense records if this was previously agreed to within the commercial lease contract. The audit window is usually open for a specific time and closes on a certain date. Therefore, keeping track of these dates is essential. Before moving into another rental year or paying any additional invoices, tenants need to review any changes and then negotiate as necessary for the most favorable renewal terms.
Lease Option Deadlines
Most lease negotiations involve deadlines for tenant rights and options. In most cases, this means the commercial lease negotiations company has a window of opportunity to start the negotiation process to obtain any of the options being offered. Since the landlord is not going to initiate any of these processes, the tenant must carefully track the various option deadlines within their lease or risk losing out on them. These options commonly affect things such as renewal, termination, and other particulars that were written into the current commercial lease.
Special Event Deadlines
In addition to option deadlines, many leases contain deadlines for special events that may occur. Some of these events include: Right of First Refusal when landlords decide to lease additional space in the building; personal guarantee expiration dates; security deposit refund dates; parking availability; and tenant estoppel to name a few. Again, these event deadlines occur based on the way they were negotiated into the current contract; however, it is up to the tenant and their commercial lease negotiations company to keep track of and begin negotiations with regard to these events.
Getting the most from any commercial lease means tracking important dates such as those referenced above, then acting in a timely manner to gain important benefits. Tenants stand to lose out on previously negotiated options and other advantages when allowing important dates pass. To ensure they obtain the most favorable lease agreements, tenants and their commercial lease negotiations company need to be one step ahead of these deadlines and be ready to discuss them within the time allotted!