When reviewing a commercial real estate lease, there are several things that you should pay close attention to:
1) Tenant Improvement Allowance- Your TI allowance is a landlord’s contribution to a project based on the contributions you are making to the building. It’s incredibly important that you understand these requirements upfront. There may be time restrictions related to these funds that you will need to plan for throughout your project.
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2) Roles & Responsibilities: Your lease will define obligations for the tenant and obligations. It’s important to understand these definitions. There may be project costs that are landlord obligations and therefore, you don’t need to account for in your budget.
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How to Know if Your Commercial Lease Terms are Good for You
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3) Rules & Regulations- Your lease will define any restrictions from the landlord that apply to the construction process. There may also be restrictions on construction vendors. It is important that you understand these regulations so that you don’t inadvertently violate any terms of your lease.
