#8: THE IMPORTANCE OF BUILDING MANAGEMENT IN OFFICE LEASING
"Half the promises people say were never kept, were never made." - E.W. Howe
Nothing is more important to a tenant's satisfaction and happiness in an office building than how the landlord manages the property. Yet, regrettably, many tenants sign office leases with little knowledge of actual management policies and practices in the building in which they will spend a large part of their lives.
Tenants simply make assumptions, and, obviously, landlords seldom go out of their way to point out deficiencies.
Several basic factors of building management determine the level of comfort you will experience in any office building. The level of performance of each should be spelled out in your lease. A tenant should assume nothing.
In any multi-tenant office building the landlord will be responsible for structural repairs, and for maintaining the building exterior and common areas. But to what extent?
Who defines "cleanliness?"
Your definition and the landlord's definition of "cleanliness" and "maintenance" may not agree. You can gain assurance by visiting the building yourself several times before entering negotiations. Look around carefully, and ask other tenants. You can also specify levels of cleanliness and maintenance in your lease terms. Your own broker also will have knowledge of such things about the building.
Does the building have on-site maintenance and cleaning personnel, or does it depend on contract cleaning and maintenance services? If contract services are used, one good guide is to know how often the building has changed services, and how long the current firm has been on the job. Frequent changes in outside sources may be a tip-off of current tenant dissatisfaction.
Seemingly insignificant items such as light bulbs and restroom supplies can not only be irritants, but expensive as well. Who's responsible for them, the landlord or you?
If a parking garage is part of the building, how well is it maintained and lighted?
What about after-hours HVAC?
Often in large buildings it is not practical for landlords to maintain heating or cooling after hours for one 10,000 or 20,000-foot tenant. Does your space have its own heating and cooling independent of the rest of the building? Could it? Who would be responsible for its maintenance?
In multi-story buildings elevator service can be a critical factor. Is there an adequate number of elevators? Are they slow or fast? Are there multi-story tenants in the building whose employees tie-up the elevators during working hours? Are there tenants with a great number of outside visitors, such as government welfare or Social Security offices?
The safest way to be certain of good building cleanliness, maintenance, and service is to be specific in your lease about what are acceptable levels. The safest way to know exactly what you may have to pay for is to specify each item for which you are responsible, and state that the landlord is responsible for everything else.
Have a pro on your side
The landlord budgets in your rent an amount for brokerage commissions. Since you're paying for it, you should see to it that at least some of this money works for you, rather than going 100% to the landlord's broker whose interests are the landlord's, not yours.
MalmoMemphis Real Estate, Inc., represents office tenants. When we represent you there will never be any question whose interests are paramount in negotiations. We handle no
office listings. We represent no office building owners, no office landlords, no
office sellers. We are your expert, independent advocate.
The 'Tenant's 10-Point Guide to Leasing Commercial Space'
is copyrighted by MalmoMemphis Real Estate, Inc., (MMRE) and may not be
reproduced without the expressed written consent of MMRE, and the inclusion
of notice that the material is 'Copyrighted by MalmoMemphis Real Estate,
Inc.' |
