How To Lease Office Space
If you are looking for a primer with tips and suggestions about how to lease office space and commercial real estate, I authored a 3-part series on this subject at another legal blog, The Startup Lawyer. It’s a pretty decent size read but it is also one of the most popular blog entries.
Reserve the right to cancel lease when landlord is slow to construct
The increase of commercial office space construction, primarily of the 1,000 to 5,000 square feet office park variety, is providing businesses with more location options and the ability to occupy brand new office space. However, signing a lease for office space not yet built can lead to negative consequences when the landlord doesn’t finish construction on time. It’s difficult to plan an office move and being delayed due to slow construction will only add to the burden of running your business, especially with all the intricate planning a move requires.
Thus, when the landlord must construct a building or improvements on the premises before the beginning of the lease term, I recommend tenants insert an optional cancellation provision if such construction is not completed by a certain date. Just keep in mind that the landlord will be less willing to add this type of provision if you have a custom buildout (and especially if this custom buildout is funded by a large tenant allowance) or if you want the cancellation date close to the lease’s effective date.
