Negotiating Lease Agreements

Excited by the prospect of a new tenant agreeing to occupy a vacant tenancy, in negotiating the commercial terms of the lease it is not unusual for a landlord to focus on the immediate tangible benefits of securing the tenancy, for example the expected rental income.

Equally for tenants, the prospect of securing quality vacant space in a competitive rental market can often take precedence over the value attributed to the terms and conditions of the lease.

This article considers the importance of sound negotiations on the requirements of the lease, in particular as to the commercial benefits that can be obtained in clarifying at the outset of discussions the expectations of the respective parties in relation to fitout works and make good requirements at the end of the lease (whether by surrender, expiry of the terms or termination).

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