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A Cost/Benefit Analysis Of Short Term Vs. Long Term Commercial Leases - Rakow Group

A Cost/Benefit Analysis Of Short Term Vs. Long Term Commercial Leases

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office space real estate Fairfield County

A Cost/Benefit Analysis Of Short Term Vs. Long Term Commercial Leases

Office Space Real Estate Fairfield County

There really is no “standard” length for a commercial property lease. That said, a typical office space lease can range from 5 to 10 years. An important piece of fine print to keep an eye out for is the provisions for lease extension. This clause could prove crucial to your relations with your landlord and the stability of your business. It will determine whether or not it’s worth your while to renew the lease on the same or updated terms. What you want to keep in mind is that the renewal clause in a lease is usually for your benefit. You’ll suffer if it’s absent from the lease and you fail to address its absence prior to signing a contract.

The Advantages To Short Term Leases With Renewal Options Over Long Term Leases

Here’s a little piece of insider knowledge for our loyal Rakow Group readers. The general consensus here is that most property owners prefer their tenants to sign long term contracts, but it is usually in the benefit of the tenant not to sign a long term contract, but rather, to sign a short term lease with the option of lease renewal written into the contract (or, a long term lease with the Option to Terminate…call us and we will explain).

Presumably, it will almost always be favorable to the owner to retain the tenants he or she already has rather than spend the time and resources finding someone new. Therefore, in the event that you, as a tenant, discover a flaw in the property that you feel the landlord should address, you may then have the negotiating power to influence him or her to make those changes once the lease expires, which would be sooner rather than later.

The Disadvantages To Short Term Leases With Renewal Options

However, on the other hand, there are a few setbacks to this strategy that you should consider. Above all, in reality, you won’t really have nearly as much negotiating power as one may expect. You’ll have fewer concessions, as landlords tend to design their contracts to reward those who show loyalty.

Good investments take a healthy combination of foresight and research. But investing, and showing faith and trust are the ingredients for a strong professional relationship. It is in this foresight in investigative resources, based on years of experience, that the Rakow Group stands to place you in the most advantageous of positions in your search for property.

Good investments take a healthy combination of foresight and research. But investing, and showing faith and trust are the ingredients for a strong professional relationship. It is in this foresight in investigative resources, based on years of experience, that the Rakow Group stands to place you in the most advantageous of positions in your search for property.

This is just one among an assortment of secrets to getting the best possible deals in your search for office space. To give yourself the advantage that your company deserves, call the Rakow Group at (203) 359-5703 for unbeatable office space real estate Fairfield County networking, consulting, and negotiating services.

office space real estate Fairfield County

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