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Frequently Asked Questions

What should I look for when reviewing a Commercial Lease agreement?

Whether you are a Landlord or Tenant, it is always good to re-read the Lease multiple times, and have a few sets of eyes review  it whether that be a partner, assistant, or attorney. Here a few mistakes/ shortcomings Brokers often have when presenting Leases for review:

  • Ensure all of the LOI items are in the Lease: We have seen this many times in the past where we draft an LOI on behalf of the Tenant and the Listing Broker didn't include all the agreed upon items in the LOI. It is always recommended to read both thoroughly to ensure nothing was missed.
  • Triple check the Base Rent and NNN calculations: Always triple check the rent escalation calculations for the initial period, option period, and NNNs to ensure they are consistent with what was agreed upon.
  • Pay attention to the fine print: Words such as "preceding/proceeding" and "reasonable/ sole discretion" can have various meanings depending on the context. Make sure the Language protects you and you understand what you are signing whether you are a Landlord or a Tenant. If you don't understand, it may be worth the small investment to have a Broker or Attorney review.
  • Signature Blocks:  Ensure all signature blocks have Name, Signature, Title, and Date. Furthermore, ensure every page of the Lease is executed or initialed depending on the form.
What should I look for when choosing a Commercial Leasing Broker?

When choosing a Broker to work with, you should consider:

  • Responsiveness: If your broker takes two or three days to respond to your calls, do you think he/ she is being responsive in their follow ups, facilitating showings/ tours? Probably not. You will want to work with a Broker that has time to properly facilitate your deal and that is available within a professionally reasonable time frame  to answer your questions as they come up.  
  • Experience: We have seen time and time again where a commercial property is poorly listed by a residential agent that "has a guy in his office that used to do commercial". These listings often lack pertinent information, and the Landlord often looses out on value in the deal because the agent was not familiar with standard commercial deal points. Make sure your Agent is experienced in your asset class, and ideally lists a few similar buildings to yours.
  • Creativity:  In Commercial Real Estate, no deal is the same. Often times deals will die because a Tenant is unwilling come up and a Landlord is unwilling to come down on price. What if your Broker took a creative approach to move the deal? Such as negotiating free rent to justifying the increase? Or obtaining an additional guarantor to make the Landlord feel better about the risk? Whatever it is, you want a Broker that thinks "How can I get this done?" not " This deal is done".
  • Cool, Calm and Collected: Leasing Commercial Real Estate can be extremely frustrating for both parties. Terms change, Landlords have to compete with other sites, Tenants have to compete with other groups,  permitting kills deals all the time, just to name a few of the constant headaches. You want a Broker that can remain calm in heated negotiations and extract facts and communicate the facts, not the frustration. Often times Brokers will get frustrated and steer their clients out of a good deal due to their ego or emotions. You want a Broker that puts your needs first.
How are Broker's Lease Commissions calculated?

Generally, the Landlord pays the commissions when a Lease is executed between two parties. The fee is traditionally calculated using a fixed percent of the Gross Lease income of the initial term which is then shared equally between both the Tenant and Landlord's Broker. Most of the time, a Tenant does not pay out of pocket to be represented by a Broker.

What contents should my Commercial Lease form have in it?

Generally you will see the following in a Commercial Lease:

  • Lease: The actual Lease itself
  • Addendum: If there were any TIs or other non standard terms they will generally be outlined here.
  • Guarantee Addendum: This outlines whether a Person or Corporation will be guaranteeing the Lease.
  • Site Plan Exhibit: A plan outlining the entirety of the building or shopping center
  • Premises Exhibit: A floorplan outlining the Tenant's Premises.
  • Agency Disclosure: A disclosure outlining which Broker represented which Party.

***Note, this outlines what is generally in a Lease, however,  certain asset classes such as Retail and Large Business Parts may include additional documentation.

"We have worked with Alex Provost of True Real Estate Partners for a number of years where he initially helped us fill a vacancy."
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Esteam Carpet & Tile Care
SVN | True Advisors

Meet Our Team

Over 20 years of commercial real estate experience. Our elite advisors have the skill sets to source, close, and provide value on all types of commercial properties.

Alex Provost

Managing Director

Payton Kelly

Senior Advisor

Rami Batarseh

Senior Advisor / Broker Associate

Alex Tannous

Senior Advisor / Broker Associate