The following is an excerpt from Jamie Moorhead's new book, Tenant Leasing 101, now available in paperback and Kindle formats on Amazon here:
In any type of real estate lease – retail, office, restaurant, industrial, or any other kind – the business principals of the tenant should take the critical step of reviewing the business terms in the lease.
As part of a typical lease transaction, the tenant’s broker should review the lease to confirm that its terms comply with the agreed-upon letter of intent, and an attorney should do the same as a regular part of its lease review.
Even with these two layers of broker and attorney review, however, the business principals will be the only ones that truly know what the day-to-day operations will be within the leased space. These principals will be the only ones who can serve as a backstop to make sure that the lease terms will not conflict with how they intend to use the space.
Here are some key provisions to double-check, even after the attorney and broker have signed-off:
Double-check the rent calculations to see if they are correct.
Review the square footage, unit number, street address, and the location on any site plan.
Check the additional rent sections to see what ‘rent extras’ are added.
Review any site plan exhibit and construction provisions...
For more, please visit Tenant Leasing 101 on Amazon here.