FISCHBACH TENANT REPRESENTATION

Lawyers and landlords are working hard to make a lease agreement as complicated as the Internal Revenue tax code.

For example two landlords offer commercial space for an annual rate of $20 a square foot. Landlord X bills his new tenant for $1666 per month for rent.^? Landlord Z bills YOU $2000 per month.

All for the same 1000 sq. ft. at $20 per foot

How does Landlord Z get away with this?

Usable space

You think you need 1000 sq ft to effectively manage your business. You want to rent 1000 sq ft. This is usable space. Space that satisfies the needs of your business to operate and grow.

Rentable space

In addition, the landlord has other space that is not primary to your needs, but definitely necessary. This space might include corridors, bathrooms, lobbies, landscaped approaches. However, sometimes landlords take liberties. Some even bill for city sidewalk space. There are lots creative addon space concepts. You get the idea.

So the Landlord Z is billing you for rentable space, which in this case is 25% more than the tenant's usable space. And landlord Z is perfectly within his rights to do that.

You're thinking, "that's just not right." And it's not if you sign a lease containing addons that you are not aware of.

What to do?

The first task in clarifying the usable/rentable maze is to figure out exactly how much usable space you need, now and in the future. Then you have a benchmark base figure to work with when the landlord quotes you his rate and addons. And a way to compare them to the competition.

The best way to be sure about your space needs is to sit down with an expert and discuss in detail the day-to-day flow of your business. Fischbach Tenant Representation provides space evaluation services through Tang Studios, a Tampa Bay architectural firm. Most often this cost is born by the tenant representative^?'s commission, essentially free to the prospective tenant.

Knowing precisely what your space needs are provides a firm base to begin negotiations with the future landlord.

Large class^? A buildings tend to stay firm on their addon costs as spelled out in the rent. These landlords' negotiating concssions will probably be in the form of constructions allowances and free sign-up bonus rent and the like.

The addons will eventually appear in your rent bill. But believe me, it's a lot better if you've thoroughly veted the issue, know it's coming and have done everything you can to mitigate the consequences.