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Leasing Real Estate
 
Copyright © 2004 Zegarelli Law Group. All rights reserved.
Written by Gregg R. Zegarelli, Esq.

 


  Leasing real estate is something that almost all businesses encounter during their life-cycle.  It is important to select attorneys who have experience in this area of law.  Here are some issues:
  • The Term.  Remember that you will be making a significant investment in your location.  The term should be long enough to achieve an appropriate return on investment.  Optional terms are a great way to give you the ability to lengthen the term. 
     
  • Buildout.  Depending upon the type of lease, the landlord may perform a "buildout."  When a landlord does this, they need to "recover," or amortize, that investment over the term of the lease.  Thus, for a longer term lease, the landlord will often give larger accommodations for buildout.
     
  • CAM.  Landlords often have many tenants in a building whereby some of the space is allocated to any specific tenant, i.e. their respective suites, and other area being common area, e.g., the hallway stairs, bathrooms and parking lots.  "CAM" is "common area maintenance" and is passed through to tenants on a pro rata basis.  Also, taxes and insurances are generally passed-through to tenants.
     
  • Incidental issues.  There are a plethora of issues with which to deal in a lease in order to manage the risk of a long-term engagement. 

Our office represents landlords and tenants and so we see both sides.  Our goal is "to get the deal done" in a positive way that minimizes risks for our clients.  Because of our experience in this area, we understand the positions and arguments, and we efficiently get to the result.


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