Hire an experienced real estate agent as a tenant representative when negotiating a commercial lease in San Jose, Santa Clara, and Sunnyvale, California. Owners and their exclusive agents are very aware of current market conditions and will try to suggest lease language that is to their advantage. It is wise for any tenant to get professional help in negotiating the terms of the lease on her behalf.

Commercial tenant representatives identify all available sites that meet their criteria, rather than limiting options to those listed exclusively for homeowners. The goal is to obtain favorable lease terms and reduce occupancy costs for the tenant.

Tenant representatives help guide the business points that need to be considered in the lease negotiation. These include the rental rate, lease term, extension options, renewal rights, expansion space preemption, lease guarantees, use and exclusivity clauses, construction and modification terms, assignment and sublease contracts, and insurance and indemnity clauses. Breach and remedy requirements are usually minimal. Depending on the actual circumstances, there are many other issues that would likely cause other lease language to be modified to serve the best interest of the lessee and limit costs during the lease term.

Every paragraph of the lease can be changed to benefit either the tenant or the landlord. Typically, this is a zero-sum game in which one party’s win is the other party’s loss. In the absence of a representative of the tenant, the landlord has the advantage. It is very important that the tenant obtain business practice advice from a real estate professional, the tenant representative, so that they understand local practices and incentives, such as free rent, tenant improvement allowances, and other incentives, before enter into a contract. Leasing contract. The landlord’s agent will certainly not offer any assistance that would reduce the landlord’s position.

Two separate roles are required, legal and business. The legal counsel of the tenant is required to provide advice on the specific language in the lease. However, experienced real estate professionals in the form of tenant representatives are better equipped to handle business issues in the lease.

Then there’s the concern of what happens if something goes differently than expected during the lease term. What happens when there is a major interruption in the operation of the space? How do we deal with a sudden and unexpected economic event? It is prudent to put some security clause in the document to allow the tenant protection or relief if some extraordinary event occurs.

In short, commercial leases are vital to a tenant’s business. It is important that the tenant obtain a fair agreement that allows the business to prosper for the duration of the lease. The landlord-tenant agreement will be much better for the tenant if he uses the services of a tenant representative. Best of all, the landlord traditionally pays the tenant representative fee. The landlord’s agent has an exclusive agreement with a fee that is usually split with the agent procuring the tenant (in this case, the tenant’s representative). Thus, the tenant obtains the representation that corresponds to him by right, and without any additional cost.