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A Conversation with Tracey Gale, Assistant Property Manager, The Pavilion
You’ve searched high and low and have finally tracked down a prime location for your company’s office. Think the hard part is over? Think again.
247advisor.com recently spoke with Tracey Gale, Assistant Property Manager of The Pavilion, a combined office space and retail center in Jenkintown, Pennsylvania. Tracey is responsible for leasing the office and retail space on behalf of the building owners, and gave us the low down on signing a lease.
Once you’ve found an agreeable space, it’s critical that you examine the terms of your lease in detail before signing. Tracey recommends that you hire a lawyer to review your lease. You may not be able to change the terms of the lease, but it’s imperative that you know what your obligations are.
If you’re renting out less than one percent of the building space, it may be difficult to negotiate special terms, says Tracey, but there are several things to consider. “You may want to add, if you can, an early termination option,” she says. Other options for consideration: an option to renew, an option to expand, and a death and disability clause (in the case of death, your company can opt out of the lease). “Businesses also need to consider the Use Clause, that is, what you are legally allowed to use the space for and the Attorney’s Fee Clause, which typically requires that tenants pay all legal fees in the case of a dispute.”
It’s also important to understand the financial terms and what is included in the rent. Full service leases are the most inclusive and typically include maintenance, utilities and cleaning. Triple net leases, on the other hand, designate “the tenant as being solely responsible for all of the costs relating to the asset being leased. Examples are any upgrades, utilities and repairs,” says Tracey. |
