According to article from Fox Business here are the top three things you may not know about your long-term office lease. First of all, all square footage is not created equal. You might be paying for extra for space you literally cannot use, because every market measures buildings differently. Secondly, you can amortize tenant improvement packages into your rent. In the long-term lease, a landlord passes on the cost of the improvements to the tenant by building them into the rent schedule. Lastly, common area maintenance expenses may contain hidden fees. The landlord has to pay common area maintenance such as asset management or property management fee but then passes on to the tenant. Be careful and educated about what you’re getting yourself into before signing a lease. Strategic can help you carefully analyze your options so that you are comparing properties on an apples to apples basis.
Excerpts from the Article:
Commercial real estate (CRE) has not kept up with the times. The industry is riddled with archaic terminology, lack of standardization and limited regulation. All of this leads to an extremely inefficient leasing process, which in most cases results in the tenant paying extra money. Here are the top three things you may not know about your long-term office lease.Citation and link:
Kopicki, Alex. “3 Things You May Not Know About Commercial Real Estate.” Fox Business News., 14 Nov. 2014 Web. 08 Dec. 2014.