There is no such thing as a standard contract to lease Tucson office space or industrial space. There are many variations, largely to cover the level of control over the use of the property.
You can negotiate a lease contract that is advantageous to your business. Here are some of the terms you need to understand to get the best possible lease.
Full-service gross lease, the most common contract to lease Tucson office space in multi-tenant office buildings, is used when the property owner provides a full range of building services to tenants.
They include utilities, janitorial services, security, systems maintenance or replacement and services and upgrades to common and exterior areas.
Such a lease also covers management, reserves, taxes and insurance.
The underlying concept is to allow the owner or manager a high degree of control over the operation of the property.
Absolute net lease requires you to pay a base rent plus property expenses. As the tenant, you pay, on behalf of the owner, all property expenses for operation, maintenance, taxes and insurance.
When the term for this lease is exceptionally long, you may be required to upgrade the property to conform to newly implemented governmental regulations, including seismic strengthening or asbestos abatement.
The length of your contract to lease Tucson office space or industrial space can affect your bottom line in more ways than just rent.
I believe there are many advantages to negotiating a long-term lease instead of a short-term arrangement.
A long-term lease provides perks in a soft market, where an owner may offer free rent periods and tenant improvements as an inducement to lease long-term.
A long-term lease also protects you from sky-rocketing rents until the lease expires.
As a short-term tenant, you can face a rent raise with merely a 30-day notice or a request to move out with only a 30-day notice unless a longer notice period is negotiated up front.
A short-term lease can cause you to lose valuable signing concessions if you end up staying for years. Once you’ve moved in, an owner may pressure you to sign a long-term agreement favorable to the owner or vacate the space.
Leases for more than one year must be in writing to be valid in most states.
Commercial property leases are a diverse set of instruments designed to meet the needs of office, industrial/warehouse and retail property owners and tenants.
All leases define the business terms, which are the smallest portion of a lease. The rest of the lease seeks to contemplate and prepare for possible future events.
As a practical matter, make all your leases in writing regardless of how short the term. Remember that the person you are dealing with today may be gone tomorrow.
Because there are almost as many lease contracts as there are buildings to lease, you should have qualified legal counsel review yours before you sign it.
Custom leases, especially for high-rise office buildings, large retail or industrial sites, can easily run 50 to 80 pages.
I can answer your questions about your current or proposed contract to lease Tucson office space, retail space or industrial space. Contact CREG Tucson at 299-3400.