4 Mistakes You Can’t Afford to Make when Signing an Office Lease in Manhattan

lawyer-for-commercial-office-leasing-manhattan-nyc-01Signing an office lease in manhattan requires attention-to-deal on part of the renter. This type of lease is generally long-term and can last for 5 years or more. An office lease is frequently the second biggest monthly expense after payroll.

Plus, the rights and restrictions specified can have a significant impact on your capability to expand, contract and relocate. As you can see, things can quickly go “off the rails.”

There Are Precautions that a Renter Can Take

The point is that any misstep can be devastating and costly. Instead of crossing your fingers, take a look at a few tips that may help you avoid future issues.

Mistake #1. Not Allowing for Enough Time

attorney-advice-commercial-office-leases-nyc-02Hopeful entrepreneurs should give 6 to 12 months to sign an office lease on 10,000 square feet and 9 to 18 months for larger spaces. Preparation is required for complex steps in any move for:

  • Negotiation of the lease
  • Working with a contractor and interior designer,
  • Bidding out and awarding the construction work required, and
  • Obtaining permits

Mistake #2: Not Hiring a Real Estate Attorney for Office Leases in Manhattan

There is no such thing as a “standard lease agreement.” Most landlords have their own interests in mind when they draft a lease. The financial terms and legal arrangements of the majority of office leases are complex. You’ll need a skilled real estate attorney that is licensed to practice in New York to help you navigate unique issues.

Mistake #3: Not Exercising Due Diligence to Investigate Compliance

The physical condition of your business’s space can significantly affect your business operations, and you have to safeguard yourself. In addition to examining the proposed lease, your real estate lawyer can confirm that the building’s zoning will allow your business to perform as usual.

Mistake #4: Not Focusing the Lease Negotiations on Key Business Issues

lease-contract-review-legal-top-nyc-lawyer-03Prospective renters should avoid solely focusing on rent and other payment terms – other crucial office lease elements can be far more critical to the future of your business. It is very important to ask the following questions:

  1. How much notice does the landlord need to give you if he or she wants to relocate your office to another part of the building?
  2. Can you sublet part of the lease?
  3. Can you obtain more square footage if your business expands?
  4. Can you cancel the lease and transfer to another building if there’s inadequate growth area?
  5. Can you extend the term if you wish to stay in the space?
  6. Can you designate the lease to a buyer of your business?

If a lot of this sounds like a lot to remember (on top of everything else), take the time to setup a meeting with a real estate attorney for office leases in Manhattan. He or she will be able to cover your bases and work in your interest. Aronstam Law can take a look at the proposed lease and provide guidance based on your business’ needs.

Call or email today for a free, no hassle consultation

David J. Aronstam, Esq.

85 Broad Street
28th floor
New York, New York  10004
(646) 759-0400

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