This reprint is definitely worth the read.
Too often do true opportunities for great landlord/tenant relations get lost in lease negotiations. However, if all parties work together to “fast track” commercial lease contracts, the benefits lead to significantly lower legal fees, more deals closed, and good relationships between landlords and tenants.
Certain steps can be taken to fast track commercial lease contracts for “win-win” results:
- Hold a pre-negotiation call and invite everyone—attorneys, principals, and brokers—to attend the call. Use this as an opportunity to establish expectations for attorney turn around time, legal budgets, approval processes, and a goal for lease execution.
- Have a detailed Letter of Intent (LOI) that provides business terms and key legal terms you truly care about. It is critical that both parties execute it before lease negotiations begin. We ask that the client’s attorney review the document to ensure that he will not need to renegotiate what has been agreed to during the “dating phase.”
- To un-complicate matters, reduce attorney fees and engender trust between landlord and tenant (keep the lease simple). Landlords with the reputation of having modern leases and professionals who listen to the tenant’s concerns reap the benefits of having strong broker relationships.
- Develop a partnership framework that involves working with other stakeholders, such as the controller and asset manager for the landlord. Having these allies in your corner helps fast track commercial lease contracts.