The Relocation Clause

The Relocation Clause

Each year, I’m amazed at the new things I see happening with tenants. One of the largest buildings near us in Southfield, has taken the relocation clause to new heights. A tenant in the building worked diligently with their landlord to get their proposed office space just right. No sooner was the lease signed when they were notified that the landlord was moving them into temporary space because another tenant had exercised their right to take the space after the lease was signed.

This should have never happened! Rights of first refusals should always be determined before a new lease is signed. This is standard and common procedure with most landlords.

As the horror story above unfolded, I found out that their “agent” represented the building as well. This is, in my opinion, very bad business – for the agent to play both sides. The agent in question had always had their landlord’s best intentions at heart, not the tenants. When it came time to make a decision, he rounded up the tenant and simply turned them over to the property manager of the building. The tenant had no choice but to move into the temporary space and to begin space planning all over again, starting from scratch after all the work they’d put into their original plan!

This didn’t work in anyone’s favor, financially. The landlord had to pay to move them twice and the cost to the tenant’s business with all the moving was simply staggering. Here’s hoping you never find yourself in this situation, but just in case, always ensure that you’re working with an agent who works for YOU, not you AND the landlord!