What happens if the landlord goes bankrupt?
You need to make sure that your lease has a recognition or non- disturbance clause in these cases. If your landlord ever goes bankrupt, you will stay in possession of the space throughout the entirety of the lease, even if there is a foreclosure. If you don’t make sure you have this, it could cost you dearly. Without this clause, if your building is foreclosed you’ll have 30 days to move out unless you can somehow make a deal with the new landlord. It’s a very bad sign if a landlord doesn’t want this clause in the lease.
Who else can move in around you?
You don’t want a close competitor moving in right next door to you. I mentioned how important it is to check your neighbors during tours, so knowing what type of tenant can move in around you is just as important. You want to make sure that no competitors or unsavory tenants will move in. This is more important in retail than in office space.
Who pays for improvements throughout the lease term?
These aren’t tenant improvements when you move in, however they are tiny costs throughout your stay. Most new buildings will cover this and put it in your fees somehow. Just make sure that you don’t have to pay out of pocket to a handyman for anything like carpet upgrades or kitchen fixes.
QUESTIONS TO ASK YOUR BROKER: KER:
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