Important Things to Know About Your Lease

Navigating the complexities of commercial lease agreements can be a daunting task for any tenant. Understanding crucial components of your lease, such as the expiration date and options to renew, is a must for making informed business decisions. By being aware of potential pitfalls and strategic opportunities, you can better manage your lease as a beneficial asset to your business.

Here are two important factors about your lease you should be watching:

The Lease Expiration Date: Leases have “holdover” penalties that can run as high as 300% of a tenant’s last month’s rent of a lease term

Landlords place pressure on tenants via the Hold Over provision in a lease to make decisions if they are going to renew a lease or vacate the property
Even if a tenant stays with the landlord’s consent after a lease has expired, a tenant could be subject to a hold over penalty cost

Option to renew: Understand the “window” of the option notice – typically not less than 9 months and not more than 12 months prior to a lease expiration date

As a standard, we place the option in the background and create superior business terms, retaining the option as a fallback position
We have had great success with this methodology for our clients

Effectively managing your office lease is not just about adhering to the terms but also maximizing the advantages it offers. Our expertise in commercial leasing has proven successful in negotiating favorable terms for our clients. If you need guidance or assistance with your lease, reach out to Mazirow Commercial Inc today. Let us help you turn your lease into a strategic business asset.

Mazirow Commercial Inc. are commercial real estate brokers and trusted advisors serving the San Fernando Valley, Conejo Valley, Ventura County, and Santa Barbara County. We bring over 30 years of tenant representation and lease review experience to the table. Our real estate experience, market knowledge, and gold standard of service and reputation enable our clients to sit at an even negotiating table with landlords and sellers.

For more information, visit our website at www.tenantadvisory.com or call 805-445-1945.