Negotiating a Successful Lease Transaction – Details Matter

July 15, 2019

In today’s fast paced world filled with constant distractions from e-mail, text messages, streaming news and general information overload it seems harder for business people to focus on details. In addition, many executives have multiple responsibilities that are all important and take time. The rub is that the success of most business deals is driven by attention to details.

In the arena of commercial office leasing this phenomenon seems to happen frequently, which is interesting because most often the second largest expense a company incurs is for their office space. In addition, office space has a direct impact on the number one expense – employees. The difference between a “market deal” and a well thought out and negotiated solution typically includes significant variance in overall cost, flexibility and allocation of risk.

A good real estate lawyer will usually pay close attention to details in the actual lease document which will mitigate some of the risk. Unfortunately, unless the transaction was thoroughly negotiated in a competitive context with key details nailed down and documented in a letter of intent, the company signing the lease is normally close to running out of time and has little leverage.

The following three things will have a significant impact on success for companies involved in a real estate transaction:
-Allow enough time to do all of the work necessary. This is normally longer than you think.
-Have “buy in” from key leaders and decision makers early and often as the transaction progresses.
-Hire a true tenant advocate that will represent your best interests and take the time to do it right.

Contact Jim, Sam or Ben to schedule a virtual or in-person meeting today.