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Tenant vs. Landlord Objectives

Virtually every aspect of a lease is negotiable. The broker’s job, whether representing the owner or the tenant, is to give advice on the business aspects of the transaction. The broker needs to understand the negotiating points of view of all parties and the significance of each lease clause and/or concession.

Tenant’s main objectives

  1. Low rent, fair method of calculation
  2. Maximum services
  3. Predictable and fair operating costs
  4. Expandability of space for future needs
  5. Maximum improvements, and right to recover value of tenant-paid improvements
  6. Fitness for use
  7. Maximum grace periods

Landlord’s main objectives (owner/developer/manager)

  1. Ability to finance construction (if necessary)
  2. Protection against income erosion
  3. Ability to regain possession
  4. Improvement and maintenance obligation on tenant
  5. Protection of equity in case of property loss
  6. Protection of property