Options in life are a great thing. Who wants to be pigeon holed? When you are leasing a commercial property, options for a tenant is a good thing. My advise is to always ask for them and push the limits.
A tenant’s option I’m referring to in a lease is in reference to the option to extend the amount of years you can remain in the space. For instance you sign a five year deal with a five year option. At the end of the fifth year you can either remain in the space or leave the space with no penalty. It’s your option. I understand tenants are wary sometimes thinking a straight ten year deal is better. Well what of after five years you need to expand? Or after five years you realize that you are paying above market rent? It is clearly to the tenants benefit.And while you have a five year lease with a five year option, why not ask for another five year option on top of it? The worst the landlord would say is no.
Landlords are wary of options. Options take the power out of the landlord’s hands. Especially if they feel like the market for their property will go up. They might offer you instead of a options with increases based on the market value sometimes based on the CPI Index (I’ll explain later on another post).
Options also take away the power of the landlord to sell the property. Not everyone wants to buy a property with tenants occupying the space on a long lease, especially if the buyer is a owner user. The landlord might give you the option, but insist if he sells the property, you must vacate the space.
If you are currently looking for space in the 5 boroughs you can always call me for advice, call Jon Brooks, agent at 5CRE 212-366-0407, email me at firstname.lastname@example.org..
Disclaimer: Not all information above may be accurate. Please before you use any advise in this post or any other post in this blog, consult with a real estate professional and/or attorney.
All writing subject to errors, omissions, change of price, or other conditions, prior sale, rent , and withdrawal without notice
I specialize in the SALE/LEASING of Industrial, Creative Lofts, Retail, Development, and Investment
Properties in New York.
As an agent, I have the amazing opportunity to mold, shape, create neighborhoods. Brooklyn is a great canvas to work with.