What can you expect with a Lease Term of one to seven years or longer?

What can you expect with a Lease Term of one to seven years or longer?

Hour Glass CROPPED

Many prospective tenants approach me with wish lists a mile long, itemizing everything they want in their business suite.  When I get down to their budget with them, I often learn they only want a one-year lease. You can’t expect the moon and the stars if you want a short-term lease.

This, however, is what you can expect:

  • For a one-year lease, the space will be delivered in a clean but “as is” condition.
  • For a three-year lease, you should be able to get new carpet and fresh paint.
  • For a five-year lease, you can ask for and receive a buildout (space expansion or modification) with a couple of extra offices, a conference room, etc.
  • For a seven-year term, expect a more robust buildout, paid for by the landlord; this might include custom extras like a wood floor in the entry for example.

I find this to be the rule of thumb in most major North American markets. However, in the cities where there is a shortage of space, you might have a hard time even getting the carpet cleaned, especially with a short-term lease. If you need an advocate to help you find space and get the best terms possible, please give me a call at 248-817-5400.

About the Author

Lynn Drake’s status is well known in the industry: She’s the commercial realtor focused on maintaining “true north” for her corporate clients. It’s a reputation built on 35 years of commercial real estate experience. Lynn became a commercial realtor in 2001 after 15 years in corporate real estate. Thus far in her career, Lynn has successfully completed over 1,500 real estate transactions ranging from small business tenant leases to the sale and purchase of industrial complexes.