This client is leasing retail space in a Centre in Oakville, Ontario, Canada. They did not have a Commercial Realtor on their side and were negotiating directly with the Landlord. After review of the Offer we made a few suggestions and the Tenant ended up with a much better Offer than was initially proposed by the Landlord.
Here’s where we made the changes:
- The Landlord agreed on a set area for the space in the Lease, not to be remeasured or increased during the Term
- Typically the fixturing period in a Lease ends when a Tenant opens for business, we got them to agree to a fixed fixturing period (potential saving of $184 per day)
- The standard lease talks about a variety of costs that were not attributable to this Centre, they were removed
- The standard lease had a continuous operating requirement, we carved out some downtime (avoided a potential $7,500 penalty)
- The Landlord agreed to waive the initial fee for reviewing plans that was required in the standard lease (savings of $1,500)
- The Landlord agreed any hoarding required would be at their cost (savings of approximately $500)
- The Landlord’s standard relocation right and redevelopment right to terminate as outlined in the standard lease were removed
- The Landlord agreed to release the indemnifier from its obligations under the lease after the initial term
Some of these points have a specific dollar value associated, while others are priceless. All too often Tenants are quick to sign an Offer without understanding the nuances of the lease document that will follow. Another great example of why you need the right team of professionals working for you when you lease commercial space.